On 30 May 2020, the Kingdom of Saudi Arabia (KSA) published updated transfer pricing (TP) guidelines to provide insight into the TP practice for taxpayers in the KSA, based on the application of the TP Bylaws. In this article, the author summarizes those TP guidelines with the objective to provide practical guidelines on the implementation of TP regulations in the KSA.
On 30 May 2020, Saudi Arabia published new transfer pricing (TP) guidelines to provide insight and guidance concerning the TP practice in Saudi Arabia based on the application of the TP Bylaws. In this article, the author summarizes those TP guidelines with the objective of updating the qualified taxable persons regarding their legislative and administrative responsibilities under the TP regulations and to enable them to better understand the TP regulatory framework and TP documentation requirements in Saudi Arabia.
This consolidated version of the OECD Transfer Pricing Guidelines includes the revised guidance on safe harbours adopted in 2013, as well as the recent amendments made by the Reports on Actions 8-10 and 13 of the BEPS Actions Plan and conforming changes to Chapter IX.
In a global economy where multinational enterprises (MNEs) play a prominent role, governments need to ensure that the taxable profits of MNEs are not artificially shifted out of their jurisdiction and that the tax base reported by MNEs in their country reflects the economic activity undertaken therein. For taxpayers, it is essential to limit the risks of economic double taxation.
As part of an increased openness to international investment and the resulting need to address international tax issues, the Kingdom of Saudi Arabia (KSA) recently adopted transfer pricing regulations consistent with global norms. Due to the newness of these regulations in the KSA tax system and the general difficulty of resolving transfer pricing disputes, the KSA continues to review the experience of other countries with transfer pricing rules, enforcement and disputes.This is the first of three papers that will examine the current and anticipated problems with the application of transfer pricing rules and explore potential methods to improve the transfer pricing dispute process in the KSA. This paper will explore the context and motivation for the adoption of transfer pricing rules by the KSA, the rules themselves, and the general enforcement approach. The second and third papers will focus on the experiences of the Internal Revenue Service (“IRS”) of the United States (“U.S.”) resolving and avoiding transfer pricing disputes and transfer pricing penalties and compliance incentives regarding transfer pricing documentation to see what procedures the KSA should consider adopting.
The Kingdom of Saudi Arabia (KSA) Tax Authorities (GAZT) released draft transfer pricing bylaws in December 2018. This article sets out a summary of the main provisions and it should be noted that there is a good amount of consistency with the OECD Transfer Pricing Guidelines; however, there are disclosure requirements due April 2019 for groups operating in KSA. In addition, local files must be produced within seven days of request and as such this will place an increased compliance burden on businesses that ordinarily adopt a risk-based approach to preparing local files.
In anticipation of the introduction of a transfer pricing policy in Saudi Arabia, the General Authority of Zakat and Tax made an amendment in 2014 to article 10(11) of the Saudi tax by-laws, laying down the concept of the arm's length principle and including a provision to disallow any charges by a related party if in excess of arm's length value. This article provides a detailed description of the transfer pricing regulations in the Kingdom.
Via a global analysis of more than 180 transfer pricing cases from 20 representative jurisdictions, Resolving Transfer Pricing Disputes explains how the law on transfer pricing operates in practice and examines how disputes between taxpayers and tax administrations are dealt with around the world. It has been designed to be an essential complement to the OECD Transfer Pricing Guidelines for Multinational Enterprises and Tax Administrations, which focus on transfer pricing issues but do not refer to specific transfer pricing disputes. All of the transfer pricing cases discussed in the book are linked to the relevant paragraphs of the OECD Guidelines by means of a 'Golden Bridge', namely a table listing the cases according to the paragraphs of the Guidelines to which they refer. It therefore provides examples of the application of the Arm's Length Principle in many settings on all continents.
Better designed and implemented fiscal regimes for oil, gas, and mining can make a substantial contribution to the revenue needs of many developing countries while ensuring an attractive return for investors, according to a new policy paper from the International Monetary Fund. Revenues from extractive industries (EIs) have major macroeconomic implications. The EIs account for over half of government revenues in many petroleum-rich countries, and for over 20 percent in mining countries. About one-third of IMF member countries find (or could find) resource revenues “macro-critical” – especially with large numbers of recent new discoveries and planned oil, gas, and mining developments. IMF policy advice and technical assistance in the field has massively expanded in recent years – driven by demand from member countries and supported by increased donor finance. The paper sets out the analytical framework underpinning, and key elements of, the country-specific advice given. Also available in Arabic: ????? ??????? ?????? ???????? ???????????: ??????? ???????? Also available in French: Régimes fiscaux des industries extractives: conception et application Also available in Spanish: Regímenes fiscales de las industrias extractivas: Diseño y aplicación
