Saudi GAZT says salaries of board directors, govt entities ‘VAT-exempt’

Salaries and remunerations of directors on boards of companies, authorities, government organizations or any similar entity are exempt from the value-added tax (VAT), the General Authority of Zakat and Tax (GAZT) has said in a statement.

Board members receiving director's fees are exempt from VAT, as they do not act independently of the entities they belong to, GAZT added in a statement. VAT was introduced in Saudi Arabia on Jan. 1 2018, as part of the GCC Unified VAT Agreement.