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The Zakat, Tax and Customs Authority (ZATCA) has announced a tax amnesty initiative, which will provide taxpayers with the option of cancellation and or removal of tax penalties relating to taxes covered in the tax laws including Value-Added Tax (VAT), Corporate Income Tax (CIT) and Withholding Tax (WHT), on the condition that the taxpayers settle the principal tax claims by November 30, 2022.

With less than 16 days remaining to e-invoicing becoming mandatory in Saudi Arabia, the Zakat, Tax and Customs Authority (ZATCA) have provided further clarity to the applicable penalties which will be enforced for any non-compliance with the e-invoicing regulations.

As we move from voluntary ESG initiatives to mandatory legislation, we explore what the banking sector needs to prioritise.

In December 2021 Saudi Arabia will make electronic invoicing mandatory for all in country taxpayers. The implementation of the electronic invoicing system, named “FATOORAH” will commence on December 4th and will be implemented in two phases. Phase One will commence from 4 December 2021 and will focus on e-invoicing generation and saving enforcement, with Phase Two commencing from 1 January 2023 aimed at integration enforcement which will be implemented in phases. We share insights of Phase One.

Eight of the 13 monitored mid-market industries returned to positive health in H1 2021, as assessed by Grant Thornton’s unique Global business pulse, compared with just two in H2 2020. And the spread of index results narrowed markedly, as more industries enjoyed the benefits of the overall mid-market recovery. Among the biggest industry movers, transport jumped 10.4 points into positive territory to 0.7, while healthcare and manufacturing rose 6.6 points, both also returning to positive ground.

Grant Thornton’s unique Global business pulse index has tracked performance of several industries between 2020 and the same period in 2021. The overall healthcare industry index score turned positive in H1 2021, climbing nearly 7 points to 1.6, which is higher than the global average. The outlook rose by a robust 12 points to 52, above the pre-pandemic level of 51. This was driven by a strong rebound in optimism, shooting up 27 percentage points (pp) to 65%, following a sharp fall in H1 2020 and only modest improvement in H2.

Grant Thornton’s unique Global business pulse index has tracked performance of several industries between 2020 and the same period in 2021. After showing strength in H2 2020, the financial services (FS) industry index declined 2 points and remains in negative territory at -5.3. Supply and demand constraints dragged on the overall FS industry, despite a sharply improved outlook rising to 62, close to the record high of 64 in early 2017.

Grant Thornton’s unique Global business pulse index has tracked performance of several industries between 2020 and the same period in 2021. The telecoms, media and technology (TMT) industry turned positive in H1 2021, with the index marginally above the global average. The outlook in the sector surged to a record high of 67, driven by positive investment intentions and conditions. Conversely, restrictions worsened 9 points owing to rising concern about demand and supply constraints. The media sector was the most pessimistic in outlook.

Reforms to the international tax framework have been debated and discussed at length in recent years. On 5 June 2021, the G7 published a statement setting out a high-level political agreement on such global tax reform. We now look at the potential impact on the technology industry.

In a bid to continue developing and positioning the Kingdom of Saudi Arabia (KSA) as a diverse and innovative market, a Royal Decree has recently announced the establishment of a new Special Integrated Logistics Zones, with the first such zone to be situated at King Khalid International Airport.

Adel Daglas, Tax Advisor - Grant Thornton Saudi Arabia discusses the latest developments surrounding electronic invoices in the Kingdom of Saudi Arabia, with Thomson Reuters MENA

The gulf region requires a sustainable tax structure which will enable a diversified revenue strategy. Whilst VAT has been introduced across KSA, UAE, Oman and Bahrain, the recent announcement of income tax across Oman may further evoke realigned strategies across the region. We share our insights on the current tax structure, comparing with similar emerging economies, whilst providing insights on the tax structures which could be adopted for future resilience.

Despite the set back caused by the pandemic, the G20 countries continue to act as a launchpad for businesses wishing to penetrate global markets in both a virtual and physical environment. This summarised guide highlights the strategic and commercial value which the G20 countries offer, supporting dynamic businesses to consider reigniting their growth path in new markets, which require diverse solutions, services and new innovative approaches.

For 17 years, Grant Thornton has been tracking the global progress of women in senior management. In this summary report we share the insights from the 2021 study, along with the progress being made across the Gulf, whilst highlighting the thoughts of key leaders.

In the immediate aftermath of COVID-19, businesses looked to improve their cash flow management and focus on day-to-day survival, leaning heavily on government support packages. But longer-term, businesses will need greater liquidity as they move towards a post-covid era. They will need to invest in adjusting to the changes, to sustain operations and stay competitive. Raising finance to do so will be essential. We share key insights relating to accessing finance

Example Financial Statements 2020