Saudi Arabia: Final warning issued after approval of trade law

Riyadh: Saudis have been given 180 days to reform after a new anti-trafficking law was passed in Saudi Arabia.

According to the details, Saudis who do business with foreigners in their own name in Saudi Arabia have been given 180 days to reform, during which effective income tax will be waived.

The Custodian of the Two Holy Mosques, Shah Salman, has recently approved a new law to curb commercial cover-up crimes. The law stipulates that the Ministry of Commerce and the Ministry of Interior, within 60 days, in collaboration with the Ministries of Manpower and Social Welfare, Investment and the Unique Residence Center, issue a reform plan of action.

The new law also stipulates that ill-gotten gains will be confiscated once the court issues a final decision on commercial cover.

If a Saudi citizen is doing business through a foreigner in his own name and the business is generating income for a Saudi or a foreigner and there is no way to confiscate the ill-gotten wealth due to legal breaches, then the matter will be taken to court.

Illegal assets will be confiscated once the court makes a final decision on commercial cover. The new law stipulates that the public prosecution can hand over wealth under commercial cover to the government for 60 days as a precautionary measure.

Its area law also contains other regulations relating to commercial activities.