In November 2021, Saudi Arabia’s Zakat, Tax and Customs Authority (ZATCA) released the third edition of Transfer Pricing Guidelines in English. The first edition and second edition were released in March 2019 and May 2020 respectively. These Guideline serves to provide insight and guidance in the Transfer Pricing practice of the Kingdom of Saudi Arabia (KSA) and represent the Authority’s views on the application of the Transfer Pricing Bylaws.
The third edition mainly updates information on financial transactions. The Guideline includes the following updates:
- Loan transactions;
- Guarantees; and
- Cash management, optimization and cash pooling.
