SILZ: Saudi’s Tax and Customs Authority Releases Comprehensive Guidelines for Special Integrated Logistics Zone

The Saudi Tax and Customs Authority (ZATCA) has unveiled the Comprehensive Guidelines on zakat, taxes, and customs regulations for the Special Integrated Logistics Zone (SILZ).

Established towards the end of 2022, SILZ stands as a free-trade logistics hub adjacent to King Khalid International Airport in Riyadh, offering connectivity to railways, metro lines, and a network of highways. SILZ provides direct and indirect tax exemptions for both local and foreign investors, such as:

• Suspension of customs duties on goods imported/transferred into SILZ.
• VAT exemption on goods imported into SILZ for specific activities.
• 0% corporate income tax rate for operations within SILZ (excluding zakat).

The tax guide for SILZ is comprehensive, covering essential aspects from foundational definitions to specific provisions governing corporate taxes, VAT, and other relevant issues.

Furthermore, the guidelines comprise dedicated chapters addressing regulatory and administrative aspects within SILZ, akin to the qualifications required by qualified entities in UAE free zones. It emphasizes the obligation of SILZ-established entities to adhere to applicable Transfer Pricing Regulations in Saudi Arabia.

Regarding the Special Anti-Avoidance Rules (SAAR), the SILZ Guidelines underscore rules concerning the transfer of activities previously conducted on the mainland to SILZ and the importance of complying with the “arm’s length principle.” Other regulations are also delineated in the Guidelines.

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