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Saudi King Salman issued a royal decree, today, July 2, on extending some government initiatives to mitigate the fallout of the coronavirus pandemic on economic activities and the private sector.
These initiatives focus on supporting Saudi employees, suspending penalties, deferring collection of fees, exemptions and tax returns.
The move comes in line with the emergency government measures that were earlier adopted to support individuals, investors and the private sector, and to enhance their role in the Kingdom’s economic development. It also aims to mitigate the negative financial impacts of the coronavirus pandemic.
The extended initiatives are as follows:
1) Supporting Saudi employees in the private sector businesses, which are hit by the COVID-19 pandemic through “Saned” program.
2) Halting recruitment penalties.
3) Lifting suspension temporarily on private sector businesses and allowing them to resume their economic activities.
4) Including Saudi citizens immediately in Nitaqat for all businesses.
5) Customs duties on imports will be deferred for 30 days, on condition of providing a bank guarantee.
6) Al-Safwa clients will receive around-the-clock services.
7) Lifting suspension on the businesses violating the wage protection rules at the present time.
8) Receive more installment requests from taxpayers without making an advance payment.
9) Deferring VAT payment through the customs department, and receiving payments through tax returns instead.
10) Accelerating requests for VAT redemption and delaying inspections.
11) Partial exemption from the levy imposed on holders of invalid visas for one additional month from the expiry date. The initiative may be extended for one month, if necessary.
12) Extending the initiative for delaying measures to suspend services for and seize the funds of taxpayers that do not pay tax and Zakat on time by two additional months from the expiry date. The decision only covers the businesses that defaulted on the tax and Zakat, which were due during the coronavirus crisis, since early March.
Since the coronavirus outbreak, the Kingdom unveiled 142 stimulus initiatives to support individuals, the private sector businesses and investors at a total value of over SAR 214 billion.
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