On 3 January 2020, Saudi Arabia has published Royal Decree No. 26040 in the official gazette clarifying rules for Tax Dispute Resolution Committee (TDRC). The Decree explains the timelines which should be followed when appealing an assessment to the Tax Violations and Disputes Resolution Committee (TVDRC). The Decree also introduces the procedure for appealing a decision of the Tax Violations and Disputes Resolution Committee to the Tax Violations and Disputes Appellate Committee. The Decree also clarifies following issues:
- rules and guidelines for the Dispute Resolution Committee;
- the deadline to reach a resolution by the Dispute Resolution Committee members is 60 days from accepting the settlement request;
- the General Authority for Zakat & Tax (GAZT) is required to respond to taxpayer’s objections within 90 days from the date of submitting the objection;
- if taxpayers wish to transfer the objection to the Alternative Dispute Resolution Committee, the taxpayer will have the right to appeal to the TDRC within 30 days from the date of rejecting the settlement or, in the absence of a successful settlement, the expiry of the time limit specified under the ADRC rules (around 30 to 150 days – to be evaluated on a case by case basis);
- submitted documents should to be in Arabic or translated into Arabic by a certified translator otherwise the documents will not be accepted;
- the Parties may agree to request for the case to be discontinued for a maximum period of 180 days;
- the TDRC will issue its decision within 60 days from the date of the first hearing session unless additional time is required by the TDRC.
