An Outlook on the Implementation of Transfer Pricing Legislation in the Kingdom of Saudi Arabia

The tax landscape is noticeably developing across Middle Eastern countries as traditional sources of state revenues are declining. Sovereign nations in the region are also being subject to mounting global pressure by organisations like the OECD to implement mechanisms for preventing base erosion and profit shifting. The Kingdom of Saudi Arabia recently introduced transfer pricing legislation after an initial draft was circulated to the public for feedback. This paper explores the Transfer Pricing Bylaws issued by the local revenue authority and the increased burden that businesses operating in the region will have to bear given the current cultural norms and business practices.