Saudi says no tax levied on company profits, citizen incomes until 2020

Saudi Arabia confirmed on Sunday that no tax will be imposed on the profits of companies or the incomes of citizens until 2020, Saudi Press Agency reported.

Finance Minister Mohammed Al-Jadaan told a meeting at the Eastern Province Chamber of Commerce that the percentage of added value tax will remain at five percent until 2020.

This tax, as a measure to cope with the dropping oil prices in the international markets and part of serious economic reforms to get the country ready for post-oil era, is yet to be implemented.

Al-Jadaan highlighted that to achieve the economic vision for 2030, the non-oil sector should achieve an annual growth of 8.5 percent and a GDP increase by 400 million U.S. dollars, while the government will fund the private sector with 53 billion dollars in the next four years. Endit