Introduction On April 18, 2025, the Zakat, Tax, and Customs Authority (ZATCA) officially published Board Resolution No. (01-06-24) in the Official Gazette, marking significant amendments to the Value Added Tax (VAT) Implementing Regulations in Saudi Arabia. These changes are part of the Kingdom’s ongoing efforts to enhance tax compliance, align with international best practices, and support the objectives of Vision 2030. While most of the amendments are effective immediately, some provisions  provide for  delayed implementation dates to allow businesses time to get adjusted for adopting the changes. In addition, the ZATCA published new guidelines to clarify its interpretation of the amended regulations and assist businesses in implementing the changes. Key Changes Below, we highlight some of the significant changes introduced

The Saudi Ministry of Justice has officially launched the Unified Contract for Lawyer Fees, led by His Excellency the Minister of Justice and Chairman of the Saudi Bar Association, Walid Al-Samaani. This unified legal contract aims to regulate the contractual relationship between lawyers and clients under a clear and transparent framework, strengthening preventive justice in the Kingdom. Key Highlights This Saudi unified contract is legally binding and enforceable, created through theNajiz platformand electronically processed by enforcement courts via the sa platform, thus removing the need for court proceedings to file lawsuits. It provides clear documentation of legal services, including representation, consultations, document preparation, notifications, and fee transactions. It helps document all associated transactions, including payment of fees, the exchange of documents, and communications

Effective 2 April 2025, the updated KSA Commercial Register Law brings with it a crucial new compliance obligation for companies: the annual update of Commercial Registrations (CR). This change, overseen by the Ministry of Commerce, provides important implications for maintaining business operations without disruption. What’s New in the CR System? The Ministry of Commerce has eliminated the expiration date and fixed validity period traditionally found in CRs. Instead, the system now highlights the original date of issuance, a move that aligns with the new annual update requirement. Businesses are now expected to confirm and update their CR every year based on this issuance date. How and When to Update Companies can begin the update process 30 days before the anniversary

Introduction: On 17 September 2024, the Saudi Arabian Cabinet approved issuance of two laws, namely the Commercial Register Law and Tradenames Law, to replace both the existing laws (after 180 days from the date of publication in the official gazette – expected to published in 1-2 weeks’ time). The revised Laws will further bolster the business and investment environment in Saudi Arabia. The core objective for the amendments and changes to the existing regulatory framework is the simplification of the tradenames registration and obtaining commercial registration processes. The new laws will enable businesses to operate in line with the best international practices while protecting the interests of local and international stakeholders. Commercial Register Law: Unlike the current provision wherein the

Introduction The Investment Law issued under Royal Decree No: M/19 dated 16.01.1446 H. will become effective on 7.8.1446 H. (6 February 2025). Unlike the old “Foreign Investment Law,” the new “Investment Law” covers investments by both local and foreign investors including government-owned companies. The Investment Law exercise involved an exhaustive review of the investment regimes of six countries (USA, Germany, Turkey, Indonesia, UAE, and Singapore) to understand the challenges faced by those countries and how they tackled the issues to create a conducive investment environment. The Investment Law and the clarification document prepared by the Ministry of Investment restate the Kingdom’s objective to enhance the competitiveness of the investment environment to increase the pace of economic development and creation of

The recent amendments to Saudi Labor Law enhance flexibility and protection for employers and employees. Key points include revised contract termination rules, stricter housing and transportation requirements, extended maternity leave, and penalties for unlicensed employee lending and discrimination. These changes seek to provide fair treatment and balance workplace interests. After approval by the Council of Ministers of Saudi Arabia, the Ministry of Human Resources & Social Development issued a guide showing all of the changes and amendments to the Saudi Labor Law. The changes will come into effect after 180 days from the date of publication in the official gazette. The changes are aimed at providing flexibility to both parties as well as protecting the interests of both parties. Significant

Introduction Generally speaking, liquidated damages are a sum of money specified in some contracts that are to be paid by one party to another as a compensation for intangible losses suffered by the latter due to breach of contract by the former. Since many a times damages are difficult to be estimated or computed, parties agree either for a specific amount or a percentage of the contract value to be payable by the defaulting party. Although liquidated damages are accepted in most of the jurisdictions, the extent to which such damages are allowed depend on provisions in the relevant regulations, the case law, or the discretion of courts. However, it is almost a settled practice that courts differentiate between liquidated

The Ministry of Human Resources and Social Development (Ministry) has issued a Ministerial Decision under No: 153307 dated 11/11/1445 H. (20 May 2024) to regulate the provisions of flexible working hours or part time employment for Saudi Nationals provided in the Labor Law. The Ministerial Decision has amended several provisions related to Flexible Work Hours or Part time Employment in the Rules of Implementation of Labor Law. This short note highlights the manner in which Saudi nationals could be employed on a part-time basis and the terms applicable to such employment contracts. The Part Time Employment mechanism enables a Saudi national to work with one or more employers, provided that the work hours are less than half of the total

Introduction Saudi Arabian Civil Transactions Law (Law) promulgated under Royal Decree No: D/191 dated 29/11/1444 H. (18 June, 2023) which became effective on 16 December, 2023 has codified the principles and rules of civil transactions, dealings and relations in an exhaustive manner. No sooner than the Law became effective, the courts in Saudi Arabia started entertaining arguments based on the provisions of the law as well as discussing and invoking the relevant provisions while rendering judgments. Notably, the Law provides limitations with respect to different periods for a variety of issues after which claims can be challenged on grounds of inadmissibility. Universally referred as ‘statute of limitations’; the provisions under the law assume greater significance insofar as inadmissibility of claims

New Opportunities for Foreign Talent and Investors The Kingdom of Saudi Arabia is actively pursuing its ‘Vision 2030’ Initiative, which aims to transform its economy by diversifying away from oil and implementing comprehensive reforms in the commercial, social, and civil sectors. As part of this initiative, Saudi Arabia is making concerted efforts to attract skilled professionals and foreign investors who can contribute to its economic and social transformation. Recognizing the pivotal role these individuals play, the Kingdom has recently revamped its Premium Residency Program to provide a more appealing and flexible framework for obtaining Premium Residency. Under the revised program, Saudi Arabia seeks to welcome world-renowned scientists, artists, talented professionals, and seasoned entrepreneurs with open arms. It offers them not