Saudi Arabia Issues Decree on Tax Authority's Right to Impose Penalties and Amended Appeals Procedures

Saudi Arabia has issued Royal Decree No. M/113 of 25 July 2017, which amends the country's income tax law with regard to penalties and appeals procedures. Main changes include:

• The General Authority of Zakat and Tax is explicitly granted the power to impose tax penalties (legal basis not previously clear);
• The time limit to appeal an assessment and an initial appeal decision is reduced from 60 days to 30 days;
• The requirement to pay the tax in dispute or provide a guarantee prior to an appea…