RIYADH: Saudi Arabia may allow foreigners to invest in self-employed professions in return for paying taxes at an estimated annual rate of 20 percent in a bid to curb commercial cover-up, Al-Eqtisadiah daily reported.
Saudi authorities are reportedly studying procedures of imposing taxes of two types. One would be in the form of financial statements provided by a foreigner in terms of revenues, expenses and profits, the daily said. The second form of tax will be imposed on estimated profits for certain professions in which profits cannot be easily verified such as the contracting sector, which will run to 15 percent, while the rate of tax on consulting professions may go to 25 percent, the daily said.
The new procedures will treat foreigners as investors in self-employed professions without the need to have sponsors after having obtained the required licenses in areas such as workshops, groceries and contracting.
The new drive comes in conformity with statements made by Minister of Commerce Majid Al-Qassabi on the sidelines of the opening of the parallel market (Nomu) last month where he said commercial cover-up is an unhealthy phenomenon and harmful to the nation’s economy.
He said his ministry has developed a study on the causes and solutions for commercial cover-up, including allowing foreigners to invest within certain regulations, and payment of tax without need to conceal their activities.
Last month, the commerce minister called for the elimination of commercial cover-up to improve the national economy and create new jobs for Saudis.
Addressing a workshop, the minister emphasized that anti-commercial concealment is an important and vital issue to improve the economy and to create new jobs. Consequently, he said, it was one of the most important initiatives of the ministry in the National Transformation Program (NTP) 2020.
Foreigners may be allowed to invest in taxed jobs
Foreigners may be allowed to invest in taxed jobs
Saudi Arabia looks to become carbon trading hub for Global South
- Kingdom eyes partnerships with Asian companies
TOKYO: Saudi Arabia is looking to become a carbon trading hub for the Global South and is eyeing partnerships with Asian companies to trade on its exchange, Japan’s Nikkei newspaper has reported.
Saudi Arabia’s Voluntary Carbon Market recently signed a memorandum of understanding with Japanese trading house Marubeni “for collaboration on carbon markets,” and has also linked up with Climate Bridge International, a Singapore-headquartered carbon finance company, as an advisory partner.
Fadi Saadeh, acting CEO of Saudi Arabia’s Voluntary Carbon Market company, said it was important for Saudi Arabia to have a market to trade carbon credits that arise from the phasing out of coal.
A carbon credit represents a tonne of CO2 or CO2-equivalent greenhouse gases reduced or removed by verified projects like reforestation or carbon removal schemes. In the voluntary carbon market, companies can buy the credits to offset their emissions to meet their net-zero goals, while the sellers of the credits can use the funds received to invest in more green projects.
VCM was set up in 2022 by Saudi Arabia’s Public Investment Fund and the Saudi Tadawul Group, the country's exchange operator.
Saadeh said VCM was geographically well located to capture demand from the Global South and could leverage existing relationships and investments that companies like Saudi Aramco have forged over the years.
“In Saudi Arabia three years ago there were zero project developers for carbon credits,” Saadeh said. “Today, because of VCM and the ecosystem around the world, we have more than 25 project developers in Saudi Arabia.” He added that the energy transition would take time.
