Salaries, Wages, And Bonuses Of The Worker Do Not Subject To VAT - Zakat Tax And Customs Authority
Category: Expats

Saudi Arabia's Zakat, Tax and Customs Authority reiterated that all salaries, wages, and bonuses that the worker receives from the employer are exempt from VAT (Value Added Tax).

The response came from the Ask Zakat Twitter account for a query in this regard stating, Salaries received by employees, do not result in any VAT obligations.

As the authority explained, Value Added Tax does not apply to salaries, wages, or any other amounts such as bonuses received by employees from their employers or sponsors.

As for establishment expenses, the Zakat authority clarified that they can be deducted from the tax return if they are related to carrying out economic activities only, and the tax has been applied to them.

Zakat and Tax authority also stated that gold is tax-free if its purity is 99% and it can be traded only in the global bullion market. But if its purity is less than 99%, it is subject to Value Added Tax.

According to the authority, gold jewelry sold by a person registered under the Value Added Tax system is subject to a 15% VAT.

 

SOURCE : SAUDI EXPATRIATES

13 Apr, 2022 0 1522
salaries-wages-and-bonuses-of-the-worker-do-not-subject-to-vat--zakat-tax-and-customs-authority-saudi
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