Rectifying the status of Anti-Concealment Law violators
Rectifying the status of Anti-Concealment Law violators
Regulations for Rectifying the status of Anti-Concealment Law violators
In brief
The regulations for rectifying the status of Anti-Concealment Law (the Law) violators, which followed the August 2020 release of the Law, aim to provide Saudis and non-Saudis who practice economic activities in the Kingdom with the opportunity to rectify their status by 23 August 2021. If they do so before the deadline, they shall be exempt from the penalties stipulated in the Law, from the penalties resulting from the crime and proceeds thereof, and from paying income tax retroactively.
In detail
The regulations identify the options and mechanisms for status rectification and clarify the procedures for reviewing rectification requests by the Ministry of Commerce. They are available in both Arabic and English.
Subject to fulfilling the regulatory requirements, the regulations outline the following options for rectifying one’s status in the Kingdom:
- Establishing partnership in the enterprise between the Saudi and non-Saudi parties
- Registering the ownership of the enterprise in the name of the non-Saudi party
- The Saudi continues to practice the economic activity by adding a new partner (Saudi or licensed foreign investor)
- The Saudi party disposes the enterprise by sale, assignment or dissolution
- The non-Saudi party obtains the Saudi premium residency by virtue of the Premium Residency Law and proceeds to rectifying their status
- The non-Saudi leaves the kingdom permanently after providing the required documents to the Ministry of Commerce
After the rectification request has been submitted, the Ministry will review the case and notify the applicant to complete the procedures of rectification within a period of 90 days from the date of notification.
Implications
The option to rectify one’s status in the Kingdom reflects the goals of Vision 2030 and is an important step for preserving the rights of business partners in Saudi Arabia.
We shall continue to keep you up to date on any further developments. In the meantime, our teams are available to discuss the regulations and provide you with further clarification.
Get in Touch
Riyadh Office
Wadih Abu Nasr Head of Tax, Saudi Levant Cluster |
Nick Soverall Senior Director, Head of Indirect Tax |
Peter Bourke Senior Director, M&A/ Int’l Tax |
Mohamed Araji Senior Director, FS/ Tax Reimagined |
Ali Sainudheen Senior Director, Domestic Tax |
Raza Qadir Senior Director, Corporate Tax and Advisory lead GCMS and inbound compliance lead |
Oleg Shmal Director, Indirect Tax |
Saber Al Zawaideh Director, Domestic Tax |
Faisal Tanvir Director, Domestic Tax |
|
Jeddah Office
Mohamed ElSwefy Senior Director, Family Office & Private Clients |
Salam Eido Director, Indirect Tax |
Muhammad Masood Director, Domestic Tax |
Khobar Office
Tareq Al Sunaid Partner, Head of Domestic Tax |
Mohammad Kamran Sial Senior Director, Domestic Tax |
Anil Bahl Director, Indirect Tax |
Mohamed Gouda Director, Domestic Tax
|
© 2024 KPMG Professional Services, a Saudi Closed Joint Stock Company and a non-partner member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee.
For more detail about the structure of the KPMG global organization please visit https://kpmg.com/governance.