Saudi: 5% tax to be charged on money transfers from 1st Jan

RIYADH: Value Added Tax (VAT), due to be introduced on 1st January, will be exempted on certain financial activities including loans, credit cards, mortgages, finance leases, banknotes or securities transactions, current accounts, deposits and savings accounts.

As for the transfer of funds, the executive regulation, as quoted by Al-Hayat newspaper, is that though the amount transferred is not subject to VAT, a transfer fee of 5 percent must be paid by the person who transfers the money.
VAT will be applied in the Kingdom on January 1, 2018 as part of the Unified Agreement for VAT in the GCC.

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