The Ministry of Commerce shared a video via social media of a company that used the grace period given to violators of Anti-Concealment Law. This grace period expired last month on February 16, 2022.
A major sanitaryware company, with an annual income of 50 million riyals which is based in Khamis Mushait, benefited from the grace period.
According to the ministry, the company's owners used the grace period available to Anti-Concealment Law violators to remedy their situation. They then transferred the ownership of the company to another party. As a result, they were exempted retrospectively from income taxes and avoided deterrent penalties, such as up to 5 years’ imprisonment or a fine of 5,000,000 riyals under Anti-Concealment Law.
After having completed all required procedures, the company can now operate legally. It can also have access to government stimulants and 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; the Saudi partner may 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.