On 15 June 2020, the General Authority of Zakat and Tax (GAZT) of Saudi Arabia has published online Circular No. 2005003 regarding income tax on capital gains from restructuring events.
Through this Circular, GAZT addresses the taxation of capital gains arising from restructuring events in the Kingdom of Saudi Arabia, and seeks to provide clarification as to the following points:
- Taxation of capital gains arising out of the disposal of shares or assets by a resident
- Taxation of capital gains arising out of the disposal of shares by a non-resident; and
- Taxation of capital gains arising out of the indirect disposal of shares by a non-resident.
GAZT issued this Circular to provide its interpretation of the tax laws in force at the time of issuance and their application in specific circumstances. This Circular is issued for information purposes only.
