GTL Summary:

This Resolution establishes the Executive Bylaws for the KSA Income Tax Law. The provided text focuses on Article 45, which originally governed the tax treatment of natural gas investments. It stipulated that such activity must be treated as a single, indivisible contract, in accordance with Article 51 of the Income Tax Law, to prevent tax avoidance. The provision prohibited fragmenting contracts or bundling gas investment with other non-related projects. It is critical to note that this Article was subsequently deleted by Ministerial Resolution No. 2568 of 2019, and is no longer in effect.

Document Type: ERS - Executive Regulations
Law: Income Tax Law (Royal Decree No M/1 - 21 Feb 2004)
Decision Number: executive-regulations-1535-article-45
Year: 2019
Country: 🇸🇦 KSA
Official Name: Article 45 - Repealed
Last updated at: 2026-01-05 08:39:39 UTC

Footnotes

[35]Deleted by Ministerial Resolution No 2568 dated 5/9/1440H (10/05/2019). Prior to deletion, Article 45 read as follows:

'The activity of investment in the field of natural gas is considered as a single, indivisible contract, in accordance with Article 51 of the Income Tax Law. It is one unified activity that may not be fragmented for the purpose of avoiding the natural gas investment tax, either wholly or partially, or in any form whatsoever.

The taxpayer may not define multiple activities in the field of natural gas investment as separate contracts in order to avoid the natural gas investment tax.

Likewise, the taxpayer may not combine activities in the field of natural gas investment with any activity outside the scope of natural gas investment, such as water, electricity, or petrochemical projects and the like.'

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