JEDDAH: The General Authority of Zakat and Tax (GAZT) on Wednesday confirmed that interest or lending fees charged with an implicit margin for finance will be exempt from value-added tax.
The authority clarified that interest or lending fees charged on loans, credit cards, mortgages, finance leasing, hire purchase products and transformations are all exempted from the VAT.
Officials of GAZT shared this information during a workshop held at its offices in Jeddah. A number of media professionals and officials of the authority attended the event.
Quashing rumors about ATM withdrawals, the GAZT officials told the workshop that customers will not be charged for withdrawing or transferring money from their accounts using ATMs.
However, the 5-percent tax will be imposed on banks’ administrative charges such as the issuance of checkbooks, statements of accounts and safety deposit boxes and the customer will have to bear this expense.
Moreover, rental prices of residential properties, life insurance contract and issue or transfer of a debt security, equity security, or any other transferable document recognizing an obligation to pay a monetary amount to the bearer are also exempt from the VAT.
According to VAT Project Manager Hmood Al-Harbi, zero-rated taxable supplies include medical products and equipment, exports outside GCC region, international transport, the supply of gold, silver and platinum investments, and services provided to non-residents like tourists and pilgrims.
“The value-added taxes that tourists or pilgrims pay will be refunded, laws for that are there in the executive regulations of the VAT, and they will be soon applied. We hope that the necessary regulatory structure will soon be ready, but we cannot give specific timing yet,” said Al-Harbi.
Moreover, government services like issuance of passports and driving licenses are also exempted from the VAT.
No VAT on loans, ATM services, says Saudi tax authority
No VAT on loans, ATM services, says Saudi tax authority
Spears of Victory 2026 military exercise begins at eastern province Air Warfare Center
- Spears of Victory 2026, one of the largest air exercises in the region, aims to enhance military partnerships
- Exercise includes a series of advanced training activities, such as joint and combined tactical operations
RIYADH: Saudi Arabia’s Ministry of Defense announced the start of the “Spears of Victory 2026” military exercise at the Air Warfare Center in the Eastern Region, the Saudi Press Agency reported on Tuesday.
The exercise is being conducted with the participation of branches of the Saudi Armed Forces, including land, air, naval and air defense forces, in addition to the Ministry of the National Guard, the Presidency of State Security, the Unified Military Command of the Gulf Cooperation Council and military forces from 15 allied and partner countries.
Spears of Victory 2026, one of the largest air exercises in the region, aims to enhance military partnerships, strengthen the exchange of expertise in planning and execution, raise combat readiness and achieve advanced levels of operational coordination and integration among participating forces.
The exercise includes a series of advanced training activities, such as joint and combined tactical operations, specialized academic lectures and operational missions designed to improve the performance of aircrews, technical and support personnel.
It also evaluates modern military tactics, including electronic and cyber warfare, within a multidimensional operational environment that simulates real operational conditions.
Forces participating in the exercise include those from Bahrain, Bangladesh, France, Greece, Italy, Jordan, Malaysia, Morocco, Oman, Pakistan, Qatar, Turkiye, the UK and the US.
Spears of Victory 2026 is being conducted at the Air Warfare Center, one of the most advanced training facilities in the region, supporting the development of combat plans, the assessment of capabilities and the testing and evaluation of systems and weapons.
