The Ministry of Commerce shared a video on its social media accounts of a business entity that took advantage of the grace period granted to violators of the Anti-Concealment Law, which expired last month on February 16, 2022.
The company, which is a large rice importer-exporter based in Khamis Mushait, has been in operation for four years and generates an annual revenue of 34 million riyals.
The ministry said the company's owners took advantage of the grace period provided to Anti-Concealment Law violators and used it to correct their situation. They transferred ownership of the company to someone else. As a result, they were exempted from income tax retroactively and avoided deterrent penalties of up to 5 years in prison in addition to a fine of 5 million riyals under the Anti-Concealment Law.
The company is now legally operating after completing all necessary procedures and benefiting from government stimulants. It can now create more job opportunities.
The grace period for violators of the Anti-Concealment Law provided all entities, regardless of sector, with appropriate options such as: partnership between a Saudi and a non-Saudi; registration of the entity's ownership in the name of a non-Saudi; allowing the Saudi partner to continue running the entity's business activities and bring in a new partner (a Saudi or a licensed foreign investor); the Saudi may dispose of and sell the entity, waive ownership, or dissolve it. Other options include granting the non-Saudi a VIP residence permit or asking him to leave the Kingdom permanently.