ECON 101 Saudi Electronic University Saudi Arabias Taxation Income Discussion

POST 1

From a perspective, the new taxes can be considered as a necessity to support Saudi Arabia’s economy. Looking from the current event of the COVID-19 pandemic, if it’s not because of the new taxes being implemented by the government it will be hard for the government to cover the costs of health care expenses. Moreover, the new taxes are a way for the government to generate revenues to achieve its vision to be less dependent on oil.

POST 2

Following the decision to adopt excise tax in April 2017 and value-added tax (VAT) in January 2018, there have been numerous discussions and queries about taxes in Saudi Arabia. There has been some misunderstanding about the differences between these two sorts of taxes.
"Actually, the concept of taxation in the Kingdom is not new," says Rupert Pease, Head of Tax, KPMG in Saudi Arabia, the Middle East, and South Asia, on the development of taxation in Saudi Arabia.
Foreign companies operating in Saudi Arabia currently pay a corporate tax rate of 5%.

a 20% rate of return This has been around for quite some time. Furthermore, Saudi Arabia

Arabia has a fully functional tax department that was established a number of years ago.
What is the purpose of taxation?

"Countries are always looking for new revenue sources," Pease explained. These funds are used to fund government expenditures that benefit the country, such as health care, defense, education, policing, and infrastructure. Saudi Arabia's income were mostly based on the sale of oil for many years. Taxation, particularly personal taxation, is the primary source of revenue for governments in other countries, such as the United Kingdom and Canada. Individuals pay a tax on their earnings, which is known as personal taxes. Depending on the level of income, this might be as high as 50%. The more one's earnings, the higher one's personal tax bill. A marginal tax system is what this is known as. The second source of information