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Document Type: Tax Law Article
Law: Income Tax Law (Royal Decree No M/1 - 21 Feb 2004)
Article Number: 10
Country: 🇸đŸ‡Ļ KSA
Location: Chapter 4 - Taxable Income
Order: 10

Article 10 - Tax-Exempt Income

Article 10 - Tax-Exempt Income

Chapter 4 - Taxable Income

Article 10 - Tax-Exempt Income

The following types of income are exempt from income tax:

  1. [Capital gains realized from the disposal of securities traded in the financial market in the Kingdom, and those in a financial market outside the Kingdom if such securities are traded in the financial market in the Kingdom, regardless of whether such disposal was executed through a financial market in the Kingdom or outside it, or through any other means, in accordance with the rules prescribed by the Regulations.] [16]

  2. Gains resulting from the disposal of property other than assets used in the activity.

  3. [Cash or in-kind distributions due from the resident or non-resident capital company's investments whenever the following conditions are met:

    1. The resident capital company's contribution in the investee company's share capital should not by less than 10%.

    2. The minimum period of ownership for the company's contribution mentioned in paragraph (c) of clause (1) of this article should not be less than one year.] [17]

Footnotes

[16]Amended by RD No M/131 dated 29/12/1438H (20 September 2017) with effect from 1 January 2018. Prior to the amendment, the clause read as follows:
'Capital gains realized from disposal of securities traded in the stock market in the Kingdom in accordance with restrictions specified in the Bylaws'

[17]Inserted by RD No M/131 dated 29/12/1438H (20 September 2017) with effect from 1 January 2018.