Transfer Pricing Update in Kingdom of Saudi Arabia

On 7 April 2023, the Board of Directors of Zakat, Tax, and Customs Authority (ZATCA) in the Kingdom of Saudi Arabia (KSA) announced the approval of the proposed amendments to the Transfer Pricing Bylaws to bring the following into effect: Extend applicability of the Transfer Pricing (TP) provisions to Zakat payers; and Introduce Advance Pricing Agreements (APA) provisions for Taxpayers and zakat payers. The above amendments will be applicable for Financial Years (FYs) starting on or after Ist January 2024 Our tax experts discuss what are the main changes, and how can Tax and Zakat payers prepare them self for these new changes.