ZATCA announced the approval of the proposed amendments to the Transfer Pricing Bylaws in the Kingdom of Saudi Arabia (KSA) to bring the following into effect:
- Extend applicability of the Transfer Pricing (TP) provisions to entities who are subject to the Zakat levy (i.e. 100 Zakat paying taxpayers)
- Introduce Advance Pricing Agreements ( provisions for Tax payers and Zakat payers.
- The above amendments will be applicable for Financial Years starting on or after 1 January 2024.
- Phase 1 will exempt Zakat payers with aggregated related party transactions less than SAR 100 mn from the Master File Local File requirement After 3 years, Phase 2 will exempt Zakat payers with aggregated related party transactions equal to or less than SAR 48 mn.