King Salman extends income tax on downstream operations until 2030-end

Saudi Arabia’s King Salman bin Abdulaziz issued a royal decree amending the first two clauses of royal decree No. M/13, as reported in the Official Gazette.

Application of the tax rate stipulated in Article 7/B of the Income Tax Law on companies involved in downstream operations, as well as oil and hydrocarbon producers, will be extended until Dec. 31, 2030.

If taxable persons — downstream companies and hydrocarbon producers — fail to separate downstream activities from oil and hydrocarbon production activities by Dec. 31, 2030, the tax shall be collected pursuant to Article 7/C of the Income Tax Law that took effect from Jan. 1, 2020.

In September 2019, King Salman ordered a tax rate to taxable companies handling downstream operations for five years starting Jan. 1, 2020, Argaam earlier reported.

Source : Argaam