RIYADH: Senior bankers clarified on Sunday that money sent home by expatriate workers will not be taxed under the value-added tax (VAT) reform initiative to be launched by the Saudi government on Jan. 1 next year.
It was also announced that companies and businesses have only three days left to register and obtain their dedicated VAT account numbers.
Saudi Arabia’s General Authority for Zakat and Income Tax (GAZT) has urged businesses with annual revenues of more than SR1 million ($266,640) to register for VAT before the deadline of Dec. 20, 2017.
“The deadlines for companies with annual revenues between SR1 million and SR375,000, however, has been extended by a year until Dec. 20, 2018,” according to a GAZT statement.
“All businesses including commercial organizations and banks have been advised to make sure they understand the VAT rules and be ready for their implementation after 15 days from now,” said Syed Ahmed Ziauddin, a senior banker who heads the financial institutions and public sector group at Bank Al-Jazirah in Riyadh.
He said: “Aljazirah Bank is fully ready to start from Jan. 1 ... and we are going to apply VAT on our service charges.”
He said that all commercial banks have geared themselves to comply with the VAT regulations. “The banks have also educated their customers about VAT besides advising them about various services that will come under the purview of VAT,” said Ziauddin, while adding that the remittances will not be taxed under the VAT system.
“Money remittance outflows will be exempted,” said Abdullah Ali Nasser Alfuraiji, chief of the Tahweel Al-Rajhi in Riyadh. Alfuraiji made it clear that “the 5 percent VAT tax would be levied on the remittance service fees, rather than the remittances themselves.
He emphasized that “Tahweel will be charging 5 percent of SR18, which we charge as remittance fee for sending funds to India. Hence, the rise will be nominal with customers required to pay 9 halalas extra for remitting money to India.”
The Tahweel chief added that this will be negligible, but will differ from country to country.
Referring to the implementation of the VAT and the levies imposed on remittances, Ahmed Mohammed Al Enazi, general manager of Enjaz Banking Services, the remittance arm of Bank Albilad, said: “There will not be any impact on remittances.” He also confirmed that “5 percent VAT will be imposed on service charges... say like 5 percent of SR16 in case of India and 5 percent of SR20 in case of Pakistan.”
“The 5 percent on banks’ service fees will be paid by the person sending money as per guidelines of the General Authority of Zakat and Tax (GAZT),” said Ahmed.
Banks and remittance centers in the Kingdom charge varying fees on remittances sent to different Asian and European countries.
The imposition of 5 percent VAT “on service charges, not on remittance amounts” was also confirmed by Anwar Ahmed Wajid Khajja, manager of products and partners at Fawri, the remittance wing of Bank Aljazirah in Riyadh.
Referring to the benefits of VAT especially those collected by banks and remittance centers, Cenon Nonie C. Sagadal Jr., marketing representative of Rizal Commercial Banking Corporation (RCBC) of the Philippines, said: “VAT is a welcome move with a slight increase in remittance fees, which will eventually benefit the remitters and the institutions.
“With the government meeting its financial goals as a result of VAT collection, more employment opportunities will be created not only for Saudis but also for expatriates within the framework of the Saudi Vision 2030.”
No VAT on expat remittances in Saudi Arabia, say bankers
No VAT on expat remittances in Saudi Arabia, say bankers
Kuwait’s crown prince meets foreign ministers from Saudi Arabia and other GCC nations
- Meeting takes place on sidelines of 46th extraordinary meeting of GCC’s Ministerial Council, during which ministers discuss developments in Syria, Lebanon and Gaza
RIYADH: The crown prince of Kuwait, Sheikh Sabah Khaled Al-Hamad Al-Sabah, met the Saudi minister of foreign affairs, Prince Faisal bin Farhan, and the foreign ministers of other Gulf Cooperation Council member states at Bayan Palace in Kuwait City on Thursday
The meeting took place on the sidelines of the 46th extraordinary meeting of the GCC’s Ministerial Council, during which ministers and other officials discussed the latest developments in Syria, Lebanon and Gaza.
They stressed the need to uphold Syria’s sovereignty and territorial integrity in the aftermath of the fall of President Bashar Assad’s regime this month, and condemned Israeli authorities for their attacks against Syria and Lebanon.
They also affirmed the GCC’s support for the Palestinian people and called for a permanent ceasefire in Gaza.
Makkah’s cultural gem offers journey through history and faith
- Hira Cultural District has books, gifts and special cuisine
- ‘Revelation Exhibition’ focuses on messages to prophets
MAKKAH: As winter arrives, the Hira Cultural District in Makkah, a landmark destination combining history, knowledge and services for tourists, has emerged as a hub for residents and visitors seeking cultural and recreational experiences.
At the heart of the district lies the “Revelation Exhibition,” which vividly narrates the story of divine messages to the prophets. It features a section focused on the life of Prophet Muhammad and the significance of Hira Mountain.
Using cutting-edge audiovisual technology, the exhibition is an immersive and enriching journey through Islamic history, the Saudi Press Agency reported.
The district’s cultural library offers a treasure trove of information on the history of Makkah and Madinah, the life of the prophet, and the legacy of Hira Mountain and its surrounding areas.
This knowledge can be explored through books, scientific references, and interactive displays.
Beyond its historical and educational appeal, the cultural district constitutes a vibrant destination for leisure and commerce.
Restaurants and cafes serve a mix of local dishes inspired by Makkah’s heritage alongside international cuisine, while shops offer unique gifts and souvenirs reflecting the district's identity.
The Saudi Coffee Museum adds a distinctive flavor to the experience. Here guests can savor traditional Saudi coffee while learning about its regional variations and preparation methods.
For those seeking adventure, the district provides access to the Cave of Hira via a specially paved pathway, allowing visitors to connect with the site’s spiritual and historical significance.
A visitors’ center provides comprehensive information on the district’s features, services and cultural offerings.
Saudi attorney general holds talks with Turkish counterpart in Makkah
MAKKAH: Saudi Arabia’s attorney general, Sheikh Saud bin Abdullah Al-Mujib, praised the strong relationship between the Kingdom and Turkiye as he welcomed a delegation led by his Turkish counterpart, Muhsin Senturk, to Makkah on Thursday.
The officials discussed legal collaborations between their nations and affirmed their desire to enhance judicial cooperation to serve common interests, the Saudi Press Agency reported.
Indulge in the magical wizarding World of Harry Potter at Riyadh Season
- The pop-up experience offers fans of all ages an immersive opportunity to step into the magical universe of witches, wizards and muggles
RIYADH: Harry Potter: A Riyadh Season Adventure is one of the many enthralling and enchanting experiences on offer at Riyadh Season this year.
The pop-up experience, brought to life by Warner Bros., offers fans of all ages an immersive opportunity to step into the magical universe of witches, wizards and muggles.
Set in the vibrant Boulevard City, the area is designed to showcase some of the most iconic locations from the beloved film series, such as Hogwarts and others.
Interactive technology plays a significant role in the experience. Guests can take part in a Great Hall Sorting Experience, where they find out which Hogwarts house they belong to, and engage in Quidditch activities, as well as practice their Quaffle skills on the pitch.
There is also a zone where visitors can try wands and cast magical words they learned from the film series, like “Expecto Patronum.”
For those looking to take a piece of the magic home, the Wizarding World Shops offer exclusive merchandise, ranging from wands to house scarves, and the Three Broomsticks Food Hall offers refreshing drinks, cupcakes and other desserts.
Costumes are a big part of the fun experience, and there is a dedicated area for shopping, ensuring that everyone can find the perfect outfit to enhance their visit.
Maram Al-Ruwaili, a passionate fan dressed as a Slytherin, shared her excitement: “I’ve been a Potterhead since 2003. Now at 31, I still consider myself a big fan. I’ve tried one Harry Potter experience before, but not in Saudi Arabia.
“This time, sitting in the Great Hall, surrounded by sound effects from the films, made it feel like we were true Hogwarts students. The atmosphere, especially with the Dementors and Christmas sounds, was magical.”
The event has attracted a diverse crowd, including international visitors.
Nanditha Krishnakumar, an enthusiastic attendee from India, expressed her love for the experience: “I’ve adored Harry Potter since childhood, and this is truly amazing. It feels so lifelike and brings my dreams to life. I love Slytherin; it might seem like an evil house, but it’s one of my favorites. I can’t wait to see what else is in store.”
Aisleen de Asis, a nurse who has lived in Saudi Arabia for almost a decade, shared her perspective: “Harry Potter is a significant part of my childhood. I heard about this experience from friends and colleagues who enjoyed it, and I had to check it out myself. Being here brings back so many nostalgic memories.”
The Harry Potter experience at Riyadh Season also celebrates community and shared passion.
Fans from various backgrounds are coming together to relive the magic of their childhood, creating connections through their love for the series.
The excitement is palpable, as visitors share their stories, dress up as their favorite characters, and take part in the interactive activities that bring the magic of the books and films to life.
Whether you are a longtime fan or new to the series, the magical experience is not to be missed.
Misk Foundation celebrates NGO graduates
RIYADH: The Mohammed bin Salman Foundation, also known as Misk, celebrated the graduation of the fourth cohort of the Misk Initiatives Incubator and Impact Accelerator programs at a ceremony held recently at Mohammed bin Salman Nonprofit City in Riyadh.
Minister of Communications and Information Technology Abdullah Al-Swaha and Misk Foundation CEO Badr Al-Badr, along with representatives of government agencies, NGOs and donors, attended the ceremony.
During the event, 11 youth initiatives were transformed into nonprofit organizations with the support of the Misk Initiatives Incubator program. Four NGOs were empowered through the Impact Accelerator program, contributing to achieving the objectives of the nonprofit sector and enhancing the role of young people in development.
Fifteen NGOs took part in the two programs, benefiting 177 people. They were provided with more than 2,000 hours of mentorship and financial grants exceeding SR7 million ($1.86 million) to support the implementation of projects serving young people. The ceremony also featured inspiring success stories, highlighting future projects aimed at amplifying social impact.
