News & Events

Insights April 2026

Saudi Arabia and the United States Sign First-Ever Tax Information Exchange Agreement

Saudi Arabia and the United States have signed their first-ever Tax Information Exchange Agreement (TIEA), marking a major step forward in cross-border tax transparency and enforcement cooperation between the two countries. Signed on April 14, 2026, by US Treasury Secretary Scott Bessent and Saudi Finance Minister Mohammed Al-Jadaan, the agreement establishes a formal framework for tax information sharing between the IRS and ZATCA. Importantly, the TIEA is not a Double Tax Treaty. It does not reduce withholding taxes or create new tax filing obligations — it serves purely as an enforcement and transparency mechanism.

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Saudi Arabia United States IRS ZATCA Tax Transparency

Insights May 2026

ZATCA's Transfer Pricing Rules Now Cover Zakat Payers — Two Years In, Are You Compliant?

Saudi Arabia — Since 2024, ZATCA's Transfer Pricing framework extends beyond income taxpayers to include Zakat-paying entities. Wholly Saudi-owned and mixed-ownership businesses with related-party transactions are now firmly within scope, and ZATCA's audit scrutiny is only growing. With FY2024 closed and FY2025 well underway, businesses must urgently verify that their intercompany transactions are Arm's Length compliant, their TP documentation — Master File, Local File, and CTDF — is in order, and their policies are contemporaneous, not retroactive. Two years in scope without proper documentation is a compliance risk no business can afford to ignore.

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Transfer Pricing ZATCA Saudi Arabia

Insights May 2026

ZATCA Can Request Your Transfer Pricing Documentation Within 120 Days — Are You Ready?

Saudi Arabia — Under Saudi Arabia's Transfer Pricing framework, companies with related-party transactions exceeding SAR 6 million annually are required to maintain a Master File, a Local File, and a Country-by-Country Report (CbCR) for qualifying multinationals. ZATCA holds the authority to request this documentation within 120 days of a company's year-end. Once requested, businesses have only 30 days to submit. Failure to comply can result in penalties of up to 25% of any tax shortfall, plus 1% monthly interest. With audit activity on the rise, waiting for a ZATCA inquiry is not a risk worth taking. Ensure your documentation is complete, accurate, and readily available.

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Transfer Pricing Compliance Saudi Arabia

Insights May 2026

SAMA Grants First Open Banking Licenses — Saudi Arabia Is Now Open for Fintech Innovation

Saudi Arabia — In a landmark move, the Saudi Central Bank (SAMA) has officially transitioned Open Banking from the sandbox phase into a formally licensed activity. By granting its first licenses to fintech pioneers including Lean Technologies, the Kingdom has signaled readiness for account information and payment services innovation at scale. The shift fundamentally lowers the barrier to entry for tech companies and foreign entrants. Through standardized APIs, new market entrants can access verified banking data with user consent, verify identities instantly, and build next-generation applications in a fraction of the traditional time. With over a million bank accounts already connected, the window to enter Saudi Arabia's fintech ecosystem has never been more accessible.

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Open Banking Fintech SAMA Saudi Arabia

Insights May 2026

Saudi Arabia's 60-Day Tax Amnesty Countdown Has Begun — Deadline: June 30, 2026

Saudi Arabia — With the April 30 annual return deadline now behind them, businesses must turn attention to an equally critical date. Saudi Arabia's Tax Penalty Exemption Initiative is in its final two-month countdown, with June 30, 2026 as the last opportunity to act. For companies whose Q1 filings revealed historical discrepancies — particularly those related to the Real Estate Transaction Tax (RETT), which was significantly overhauled in 2025 — this 60-day window offers a rare chance to self-correct without incurring penalties. Once the deadline passes, that opportunity closes. Businesses are strongly advised to review their outstanding tax positions and take corrective action now.

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Tax Amnesty RETT Saudi Arabia

Insights May 2026

SAMA Issues New BNPL License as Saudi Arabia's Digital Finance Sector Reaches 71 Licensed Companies

Saudi Arabia — On April 16, the Saudi Central Bank (SAMA) granted a Buy-Now-Pay-Later (BNPL) license to Modern Integrated Solutions Financing, bringing the Kingdom's total number of licensed finance companies to 71. For digital finance providers eyeing regional expansion, the Kingdom presents a compelling case. SAMA's consistent track record of licensing new players offers a clear, transparent, and investor-trusted regulatory pathway to launch and scale operations with confidence. Underpinning it all is Vision 2030 and a rapidly accelerating cashless economy. For digital finance providers, the question is no longer whether Saudi Arabia is ready — it is whether they are.

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BNPL Digital Finance SAMA Vision 2030