13/12/2016
A financial
expert urged the Saudi companies to
prepare for the value-added tax, which will be applied in the next two years, by reviewing
internal systems, documents and prices and so on, stressing that such a tax
aims at the difference between the cost price and the Sales price of the goods.
The indirect tax manager in Price
Waterhouse Coopers in Saudi Shadi Abu Shakra,
in the expanded meeting of businesswomen in the eastern region, which was held
last week said that the Gulf Cooperation Council agreed to adopt a unified
framework for the application of value-added tax by 5% and it is expected to be apply in
the first of January 2018 or 2019 maximum, adding that this tax is one of the
strategies suggested to diversify the government revenue resources, and
enhancing the sustainability of financial flows, it is a common financial tool in
all countries of the world, as this tool will serve the
infrastructure projects and the provision of jobs and diversify sources of
income and financial stability in the Gulf countries
He urged all companies to prepare now for this tax through conciliation
accounting conditions and upgrade their systems, and make sure that the value added
tax is applied evenly in the company entities, and review company documents to evaluate
the potential challenges and implications for the tax application, and begin to
evaluate the potential effects of taxes
on business, including the effect on profit and cash flow, and make sure to
work in the regulations and procedures for the application of the tax system to
function properly and the preparation of reports and the required documents.
He praised the role of the Chamber represented by the Executive Board for
businesswomen for their initiative in holding this meeting at this time to
start in raising awareness and increasing knowledge about financial awareness
and increasing knowledge in the institutions.
