GTL Summary:

This Resolution constitutes the Executive Bylaws implementing the KSA Income Tax Law. The provided text, specifically Article 26, clarifies the scope of activities considered an 'investment in natural gas' for tax purposes. It establishes that for taxpayers in the natural gas investment sector, the transportation and distribution of gas and its liquids are part of this investment. However, the Article explicitly excludes local distribution networks and pipeline systems established by non-gas producers after the official points of sale, thereby distinguishing between integrated production-distribution and separate third-party activities for determining the tax base.

Document Type: ERS - Executive Regulations
Law: Income Tax Law (Royal Decree No M/1 - 21 Feb 2004)
Decision Number: executive-regulations-1535-article-26
Year: 2019
Country: 🇸🇦 KSA
Official Name: Article 26 - Distribution Activities
Last updated at: 2026-01-05 08:39:39 UTC

Article 26 - Distribution Activities

[The transportation and distribution of gas, its condensates and its liquids through distribution systems shall be regarded as a part of investment in natural gas for the taxpayer engaged in the natural gas investment sector. This does not include local distribution networks and pipeline systems established by non-gas producers after the official sale points.][18]

Footnotes

[18]Amended by Ministerial Resolution No. 2568 dated 5/9/1440H (10/5/2019). Prior to amendment, Article 26 read as follows:

'The distribution of gas and its liquids through authorised local distribution systems pursuant to the Gas Supplies and Pricing Regulations is considered a form of investment in natural gas.'

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