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About The Department

First: An Overview about the Department
Income Sales Tax Department

Income tax department started as a section under the Ministry of Finance when the first income tax law was issued on1933, then it became an independent department in 1951, where it practiced its work under Law No. (50) of 1950. Since then, the tax legislation has undergone several amendments for developing it and keeping up with the economic and social developments in order to fill up the gaps arising as a result of the application.

The Kingdom is considered one of the first countries in the region to introduce the concept of self-assessment in accordance with the provisions of the Temporary Income Tax Law No. (34) of 1982, followed by the Income Tax Law No. (57) of 1985, which remained valid and in force until the issuance of Temporary Law No. (28) for the year of 2009, that aimed to enhance the national economy, encourage the investment climate, and simplify the taxation system procedures by improving the legal framework and reducing the tax burden on most citizens by exempting a large percentage of low- and middle-income earners and finally, an income tax law was issued, The Income Tax Law No. (34) for the year of 2014 that became into force on 1/1/2015, which came to re-progress the tax, which was a requirement for all social and economic segments, and which was amended by virtue of the amended Law No. (38) for the year 2018 that became into force with its provisions on 1/1/2019.

General Sales Tax Department

The General Sales Tax Department was established and the implementation of sales tax in the Kingdom began on a small scale and with reduced sales tax rates as of 31/5/1994, which is the date of publication of the General Sales Tax Law No. (6) for the year 1994 in the Official Gazette No. (3970), Then the tax legislation went through several developments during which the tax was expanded to include many goods and services successively until Law No. (36) of 2000 was issued in force as of 1/1/2001 as a start for a similar application of the value-added tax system applied globally, and the legislation developed until It ended with the current form of the sales tax, in view of the amendment that occurred under the temporary amended Law No. (29) of 2009 and the amended Law No. (26) of 2012, where the amendments came to achieve equality and justice among taxpayers, encourage investment, reduce double taxation, and to achieve comprehensive reform within the framework of the process of sustainable economic and social development and to preserve the right of both the treasury and the taxpayer. The latest amendment was based on a set of basic pillars aimed at achieving general harmony between the system of tax legislation, the most important of which is the unification of audit, assessment and appeal procedures for both income tax and sales tax, which enhances the principles of transparency and clarity in tax treatment and contribution to simplifying procedures.

Merging the Income Tax Department and the General Sales Tax Department into One Department

Income and Sales Tax Department was merged into one department under the name of Income and Sales Tax Department as of 16/8/2004 pursuant to the law amending Income Tax Law No. (31) for the year 2004 and the law amending General Sales Tax Law No. (32) for the year of 2004 published in Official Gazette No. (4672) dated 16/8/2004.

The department has worked hard over the past years for updating the tax policies and developing the tax administration system by raising the quality and efficiency of the tax audit and collection process and increasing tax awareness and education, which resulted into increasing the tax compliance. The Department also worked hard for expanding the base of tax inclusion and reducing the tax evasion, as well as expanding the provision of electronic services and developing the skills, capabilities and expertise of its tax staff in order to achieve justice and tax transparency by standardizing procedures and strengthening the relationship with the department's partners in order to supply the country's public treasury with revenues to enable it to carry out its duties towards the country and the citizen.


An optimal tax system that achieves social justice and enhances the growth of the national economy.


A transparent tax administration that supplies tax revenues to the treasury through electronic tax services, enhances taxpayers confidence, voluntary commitment and tax compliance, as well as applying legislations with integrity, equity, and justice, depending on efficient human resources and modern technologies and programs.

Core Values
  • Justice and equality
  • Efficiency and professional care
  • Auditor Independence
  • Maintain confidentiality
  • Integrity and objectivity
  • Respect and appreciation of the taxpayers

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