Zain Saudi files new appeal against GAZT tax claim

Mobile Telecommunications Company Saudi Arabia (Zain Saudi) has appealed an order of the General Authority of Zakat and Tax (GAZT) to pay SAR 48 million related to withholding tax (WHT), the telecom operator said in a bourse statement on Sunday.

Zain Saudi paid on Thursday invoices issued by the GAZT amounting to SAR 48 million, related to WHT.

The telco has also issued a bank guarantee of SAR 43 million for the penalty generated from the delay in paying the WHT.

The Kingdom's third largest mobile operator said that it expects no financial impact from this payment, given its sufficient provisions.

GAZT had earlier ordered Zain Saudi to pay SAR 352 million in Zakat and SAR 267 million for WHT, for the period from 2009 to 2011.

Zain Saudi contested GAZT’s request in August 2015, and was able to have the amount of SAR 352 million related to Zakat revoked entirely. In addition, SAR 219 million of the withholding tax claim was also revoked.

“Zain will continue with its appeal of the remaining WHT amount of SAR 48 million,” the statement said.