Saudi Arabia’s National Program for Combating Commercial Concealment confirmed that it will continue correcting the status of companies involving commercial concealment (tasattur), with the provision of some concessions and exemptions during the corrective period, which will end on 23rd August.
The move, which affects all businesses regardless of size, income, or commercial activity, permits non-Saudis with premium resident visas to alter the status of their enterprises if they do not match the requirements.
The program declared that the restrictions for beneficiaries will be relaxed during the correction period. The criteria for establishments to obtain annual revenues has been reduced from $10 million (SR40 million) to $2.6 million (SR10 million), while the deadline for achieving the capital required for restricted operations has been increased from three to five years.
The concessions include exemption from law-enforced fines and the consequences of other penalties, as well as exemption from paying income tax retroactively, to ensure the regular conduct of the economic activity. Corrective actions must be taken using a variety of alternatives available on the Ministry of Commerce’s website.
According to the report, “Minister of Investment Khalid Al-Falih has approved the application of these requirements effective from last Sunday by issuing investment licenses to establishments registered in the name of non-Saudis if there is an agreement between Saudis and non-Saudis as partners.”
The program affirmed the continuation of the correction process with all other options suitable for establishments in all sizes and sectors, and these comprise practicing economic activities of Saudis by introducing a new partner in the firm, as well as Saudis running the facility, enabling non-Saudis to get Premium Residency to run the company and the non-Saudis involved in tasattur leaving the Kingdom permanently.
As per the updated requirements for correcting the status, “The company’s registration in the commercial register would be before the start of the corrective campaign and that the foreign partner would be residing in the Kingdom before the start of the correction period. Moreover, the foreign partner’s employer should not have any objections to the correction process.”