Article 44 of the Saudi Income Tax Law
المادة 44 من نظام ضريبة الدخل · الفصل العاشر: ضريبة استثمار الغاز الطبيعي
The article imposes a tax called the natural gas investment tax on anyone engaged in investing in natural gas, its liquids and its condensates within the Kingdom, its exclusive economic zone or its continental shelf.
Official text (Arabic)
This article has not been amended since the law was issued.
تفرض على كل شخص يعمل في مجال استثمار الغاز الطبيعي وسوائله ومكثفات الغاز داخل المملكة أو منطقتها الاقتصادية الخالصة أو جرفها القاري ضريبة تسمى ضريبة استثمار الغاز الطبيعي .
This is the official Arabic wording, the only legally binding version. We do not translate the law itself; the explanation below is ours. Official source: Bureau of Experts at the Council of Ministers
Article 44 explained in plain English
This article is the opening article of Chapter Ten of the Law, and it creates a special tax called the natural gas investment tax.
Who is subject to it? Every person, that is, any natural or legal person as defined in Article 1, who engages in investing in:
- Natural gas.
- Natural gas liquids.
- Gas condensates.
Where? Within the Kingdom, or in its exclusive economic zone, or on its continental shelf. This is consistent with the definition of "the Kingdom" in Article 1, which includes the marine and sub-marine areas over which the Kingdom exercises sovereignty, sovereign rights or jurisdiction under international law.
The article does not itself define what "engaging in natural gas investment" means, nor the tax base or rate; these are set out in the following articles of the same chapter, where Article 45 defines natural gas investment activities, transport and gas condensates.
This article matters primarily to companies working in the gas and energy sector. To determine whether a particular activity falls within the scope of this tax, it is advisable to consult a lawyer specializing in tax and zakat.
Translated from our Arabic explanation with machine assistance. For guidance only; it does not replace advice from a lawyer on your situation.
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Frequently asked questions about Article 44 of the Saudi Income Tax Law
What is the natural gas investment tax?
It is a tax imposed by the Income Tax Law on every person engaged in investing in natural gas, its liquids and gas condensates.
Does the gas investment tax cover work at sea?
Yes, it covers work within the Kingdom or its exclusive economic zone or its continental shelf.
Is the tax limited to companies?
The text imposes it on every person engaged in this field, and a person under the Law includes both natural and legal persons.
More articles on Natural Gas Investment Tax
- Article 45
The article defines working in natural gas investment, what is meant by gas transport and what it excludes, and what is meant by gas condensates, for the purposes of the natural gas investment tax.
أ - يقصد بالعمل في مجال استثمار الغاز الطبيعي أعمال التنقيب عن الغاز الطبيعي وإنتاجه وتجميعه وتنقيته ومعالجته ، وتجزئة سوائل الغاز الطبيعي، وإنتاج وتجميع مكثفات
- Article 46
The article defines income from natural gas investment as the gross income from selling the gas, its liquids, condensates and products, and any incidental or non-operating income linked to the main activity.
الدخل الناتج من العمل في مجال استثمار الغاز الطبيعي ، هو إجمالي الدخل المتحقق من بيع أو تبادل أو تحويل الغاز الطبيعي وسوائله ومكثفات الغاز بما في ذلك الكبريت وا
- Article 47
The article sets the base of the natural gas investment tax as the gross income in Article 46 after deducting deductible expenses, and treats royalty and surface rent as deductible.
وعاء ضريبة استثمار الغاز الطبيعي هو إجمالي الدخل المشار إليه في المادة السادسة والأربعين من هذا النظام مخصوما منه المصاريف جائزة الحسم بموجب هذا النظام ، وتعتبر
- Article 48
The article ties the rate of the natural gas investment tax to the internal rate of return on the taxpayer's cumulative annual cash flows, under a table that starts at 30% and ends at 85%.
يحدد سعر ضريبة استثمار الغاز الطبيعي عن أية سنة ضريبية وفقا لمعدل العائد الداخلي للتدفقات النقدية السنوية التراكمية للمكلف المستمدة من نشاط استثمار الغاز الطبيع
- Article 49
The article explains how annual cash flows are calculated by adjusting the natural gas investment tax base, adding back certain items and deducting others.
يتم حساب التدفقات النقدية السنوية عن طريق تعديل وعاء ضريبة استثمار الغاز الطبيعي كما يلي : أ - إعادة إدراج الخسائر التشغيلية المرحلة من السنوات السابقة . ب - إع
- Article 50
The article applies income tax at 20% under paragraph (b) of Article 7 to the gas investment tax base, and then deducts the income tax paid from the gas investment tax due.
أ - تطبق ضريبة الدخل وفقا للفقرة (ب) من المادة السابعة من هذا النظام على وعاء ضريبة استثمار الغاز الطبيعي للمكلف الخاضع لضريبة استثمار الغاز الطبيعي . ب - يحسم
The texts are reproduced from the official website of the Bureau of Experts at the Council of Ministers for reference; where they differ, the officially published Arabic text prevails. This content is not legal advice.