Saudi Arabia Makes Arabic Language Mandatory for Businesses

Nov. 28, 2012 - PRLog -- (Sunnyvale, CA)- Saudi Arabia has made Arabic as the mandatory business language in all commercial and business dealings. Companies doing business in Saudi Arabia are required to abide by the new ruling requiring business and commercial documents like utility bills, advertising, contracts, and insurance certifications to be written in Arabic.

The enterprises which fail to adhere to the ruling will be liable to pay a fine of SR 100,000, which can be doubled. In case of repeated offence, businesses may also face the risk of being asked to close down for a year.

The earlier legislation required keeping commercial books of business in Arabic language. However, in practice, the Department of Zakat and Income Tax (DZIT) has been satisfied with receiving responses to its objections or queries in Arabic.

After this new legislation, the use of Arabic language would be mandatory in all commercial and business dealings for businesses operating in Saudi Arabia. Therefore, businesses may need to translate books of accounts and commercial records in order to comply with the new legislation.

New Form for claiming Tax Incentives

In another update form Saudi Arabia, DZIT has issued a new form which needs to be submitted to take advantage of special tax incentives. However, there are several qualifying conditions that must be satisfied to avail capital incentives.

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