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Document Type: BL - Bylaws
Law: Income Tax Law (Royal Decree No M/1 - 21 Feb 2004)
Decision Number: 1535-article-58
Year: 2019
Country: 🇸đŸ‡Ļ KSA
Official Name: Article 58 - Department's Right to Information

Ministerial Resolution No. 1535 of 2004 [Executive Bylaws]

Executive Regulations of the Income Tax System

Article 58 - Department's Right to Information

  1. [The Authority shall have the right to examine taxpayer's books and records in the field, to have the information it needs for the purpose of applying this Law, whether about the taxpayer himself or to obtain information about another taxpayer or for satisfying its obligations in applicable tax treaties. A fine of SR 3,000 is imposed on any taxpayer who refuses to cooperate with the concerned Authority's employee assigned to conduct the examination or enable him to perform his duties properly. The Authority also has the right to resort to the competent authorities to compel the natural or corporate person to provide the required information.

    In case the taxpayer fails to co-operate in providing the required information to the Authority, the Authority has the right to complete its procedures related to the taxpayer's assessment or otherwise as it deems appropriate according to the information available to it.

  2. All persons, whether natural or corporate, a taxpayer or not, including charitable organisations, endowments, institutions, public authorities and government agencies, must provide the Authority with the following:

    1. Information requested by the Authority related to the enforcement of the provisions of the Income Tax Law and the provisions of the tax treaties in force in the Kingdom, or to fulfil obligations pursuant to applicable tax treaties.

    2. Information on all contracts (excluding contracts with a value of less than SR 100,000) concluded with any person in the private sector, and any amendments to those contracts, within a period of three months from the date of signing the contract. These institutions shall also notify the Authority of the contract suspension date and reason, if any, and of any rights arising for either party due to the suspension, within thirty days of the suspension date. The Authority has the right to request for a copy of the contract, and each party breaching its contractual obligations shall be jointly liable, with the taxpayer, for any tax claim or fines due on the contract.

  3. In the event of not providing the Authority with the required information and forms for the purpose of applying the provisions of international agreements of which the Kingdom is a party, the penalties set out in the Regulation for Treatment of Non-Disclosure of Information for Tax Purposes, issued by Cabinet Resolution No. 706 dated 30/11/1438H (22 August 17) shall apply.

  4. [Managers/directors of finance and project management departments in government agencies and public institutions shall be responsible for informing the Authority with the required information regarding contracts signed with the private sector at the date prescribed in Paragraph (2/b) of this Article. Those who fail to comply shall be subject to the penalties set out in the relevant regulations][46]

Footnotes

[46]Amended by MR No. 1727 dated 25/05/1439H (11/2/2018). Prior to the amendment, Article 58 read as follows:

  1. '[Subject to the provisions of Article 61 of the regulations, any natural or juristic person, whether taxpayer or non-taxpayer, including public organizations, and bodies and, governmental authorities, must provide the Department with any requested data relating to the application of Saudi Tax law as well as application of Double Tax Treaties where the Kingdom of Saudi Arabia is a party. Also, these parties must provide the Department with basic contract information details for services or subcontracts.]

    Amended by MR No. 1776 dated 18/5/1435 (19.3.2014). Prior to the amendment, Article 58(1) read as follows:

    'Natural and corporate persons, including public organizations and governmental agencies are required to provide the Department with basic information as stated in Article 61 of the Law, in regard to construction, service and delivery contracts, and their amendments, that they may conclude with any person from the private sector within three months of date of contract signature and upon any amendment thereof. They are also required to inform the Department of any cessation due to any reason and of subsequent rights to both parties from each other within 30 days of cessation. The

    Department has the right to request a copy of the contract'

  2. [The Department may seek help from the relevant executive authorities to oblige a natural or juristic person y to provide the required information, and it shall be jointly responsible with the taxpayer for the tax due therefrom or any consequential fines payable by any party violating the requirements stated above.]

    Amended by MR No. 1776 dated 18/5/1435 (19.3.2014). Prior to the amendment, Article 58(1) read as follows:

    'A natural or corporate person who is responsible for informing the Department of the required contract information and fails to do so shall be jointly with the taxpayer liable for the tax payable on the contract and for any tax penalties that may arise.'

  3. Under the Council of Ministers' resolution No. 278 for 1391H, finance managers and project managers of governmental agencies and public organization are responsible for informing the Department with information of concluded contracts within the set time.

  4. Without prejudice to withholding tax provisions of Article 68 of the Law, the provisions of this Article's paragraphs apply to all contracts with exception for a contract with a value less SRs100.000.'