New Orders by King Salman on wages, VAT, and compensations: The Custodian of the Two Holy Mosques, King Salman bin Abdulaziz, issued an order to extend a number of government initiatives to mitigate the effects of the Coronavirus pandemic on economic activities and the private sector. Details below.
The High Order issued to extend a number of government initiatives for an additional period. In order to achieve full benefit from the initiatives announced since the beginning of the pandemic, where the initiatives agreed to be extended focused on (supporting Saudi workers, stopping fines, postponing the collection of fees, exemptions, and declarations).
This step is an extension of urgent government measures that contribute to supporting individuals, the investor sector, and private sector enterprises and enhancing their role as partners in developing the Kingdom’s economy, and mitigating them from the financial and economic impacts of the consequences of the emerging Coronavirus.
New Orders by King Salman on wages, VAT and compensations
The initiatives ordered to extend came as follows:
- Supporting Saudi workers in private sector facilities affected by the repercussions of the emerging Coronavirus through the Sanad system.
- Stop fines related to recruitment.
- Lifting the temporary suspension of private sector facilities to correct the activity.
- Calculating the employment of “Saudi” in ranges immediately for all establishments.
- Lifting the suspension of wages protection during the current period.
- The continuity of service for elite clients around the clock.
- Postponing the collection of customs duties on imports for thirty days in exchange for submitting a bank guarantee.
- Extending acceptance of installment applications submitted by the taxpayers without requiring the advance payment.
- Postponing the payment of value-added tax through customs to be through the declaration.
- Expedited payment of VAT refund requests and examination later.
- Partial exemption from the financial compensation for the expiry of their residence (an additional month) from the date of its expiry, provided that the initiative is extended for an additional period (one month) if the need arises.
- Extending the period of the initiative to “postpone the implementation of procedures to stop services and seize funds for taxpayers who are not obligated to pay the tax and zakat on the regular date” (two additional months) from the date of its expiry and only for establishments that defaulted on the payment of tax and zakat dues that were due to be paid during the pandemic period, beginning From March 2020.
Kingdom fighting against the pandemic
Since the beginning of the fallout from the Corona crisis, the Kingdom’s government has announced a set of urgent initiatives that amounted to 142 initiatives targeting individuals, private sector enterprises and investors, with a value exceeding 214 billion riyals.
In addition to forming a number of ministerial committees, and with continuous follow-up from Prince Muhammad bin Salman bin Abdulaziz, Crown Prince, Deputy Prime Minister and Minister of Defense, these committees aim to study the effects and repercussions of the emerging Coronavirus crisis and its challenges constantly, in a number of sectors and regions and study opportunities to address them, whether with support or Extension of initiatives or others.
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