Recently, the General Authority of Zakat and Tax (GAZT) of Saudi Arabia have requested the taxpayers to submit specific transfer pricing (TP) documentation (master file and local file) in relation to the fiscal year ending 31 December 2018.
According to the ‘Transfer Pricing Bylaws’, taxpayers must submit transfer pricing documents with their tax returns upon request from GAZT. Since July 2019, the Authority has sent communications to taxpayers requiring them to submit their transfer pricing documentation.
Consequently, taxpayers must submit the Master file and the Local file as of the date of a GAZT request within 30 business days. It is not necessary to prepare the file if a taxpayer with related party transactions has less than SAR 6 million.
