GTL Summary:

This Resolution constitutes the Executive Bylaws for implementing the KSA Income Tax Law. The provided text, specifically Article 34, details the determination of the taxable base for taxpayers engaged in the production of oil, hydrocarbons, and natural gas investment. It mandates that conversion prices for transactions between natural gas products, liquids, and condensates, along with prices for other related income sources, shall be determined by the Ministry of Energy, Industry and Mineral Resources. This ensures a standardised and authoritative valuation for calculating taxable income within the energy sector, as amended by subsequent resolutions.

Document Type: ERS - Executive Regulations
Law: Income Tax Law (Royal Decree No M/1 - 21 Feb 2004)
Decision Number: executive-regulations-1535-article-34
Year: 2019
Country: 🇸🇦 KSA
Official Name: Article 34 - Prices to Be Used
Last updated at: 2026-01-05 08:39:39 UTC

Article 34 - Prices to Be Used

[In the case of a taxpayer engaged in the production of oil and hydrocarbons and the investment in natural gas simultaneously, the taxable base for each shall be determined, and the conversion price for transactions between natural gas products, liquids and gas condensates including sulphur and other products, as well as the price of any other source of income relating to its primary activity, shall be determined as specified by the Ministry of Energy, Industry and Mineral Resources.][24]

Footnotes

[24]Amended by Ministerial Resolution No. 2568 dated 5/9/1440H (10/5/2019). Prior to amendment, Article 34 read as follows:

'The prices to be used for calculating total realized income shall be determined according to the Gas Supplies and Pricing Regulations and their Rules for Implementation. Where no specific provisions exists, prices shall be determined on commercial principles, subject to approval by the Ministry of Petroleum and Mineral Resources.'

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