60 days left to correct the conditions of the sneakers…and the “artificial intelligence” of a navigator

Only 60 days separate us from the expiry of the deadline for correcting the conditions of violators of the anti-commercial cover-up system set by the concerned authorities in Saudi Arabia, which began on August 23 and will continue until February 16, 2022.

The mechanisms of oversight work after the end of the corrective period will be strict and with new methods based on artificial intelligence in analyzing and controlling the data of violating facilities and inflicting severe penalties on them, which reach up to 5 years imprisonment or a fine of up to 5 million riyals or both.

The time period specified for the correction was supposed to end by Muharram 15, 1443 AH, corresponding to August 23, 2021, but an approval was issued by the Council of Ministers to extend it to another six months, so that the opportunity would be available to those who wanted to correct the conditions of their business.

The regulation included a corrective period during which the situation of the violator of the provisions of the system can be corrected, and the benefits provided for in the regulation can be taken advantage of. In the system and its consequences, it is the payment of income tax retroactively.

The National Anti-Concealment Program affirmed the Ministry of Investment’s intention to provide an opportunity for licensing the beneficiaries of the corrective campaign, so that a non-Saudi can be entered as a partner in the existing facility or transfer its ownership to him with obtaining a foreign investment license, and exemption from the requirement of the international presence of the beneficiary facility, in the event that a number of Among the conditions and requirements, including that the establishment be medium or large, according to the classification of the General Authority for Small and Medium Enterprises.

In addition to being registered in the commercial register before the start date of the corrective campaign, and that the foreign partner resides in the Kingdom before the start of the corrective campaign, and the foreign partner’s employer has no objection, while fulfilling the requirements of the foreign investment law and its executive regulations.

With regard to the premium residency status, the non-Saudi center can obtain the premium residency in accordance with the provisions of the premium residency system, and complete the correction of his status by taking advantage of the advantages provided by the premium residency, which includes enabling him to obtain an investment license in accordance with the foreign investment system through the Ministry of Investment .

The national program to combat commercial concealment worked to unify and coordinate efforts between government agencies, by following up and supervising the implementation of initiatives and supporting decision-making through monitoring and studies, with the aim of eliminating the causes of commercial cover-up and achieving sustainable economic growth. The program is supervised by a ministerial supervisory committee, with the participation of 11 governmental bodies were formed according to the Royal Decree.

The corrective period for violators of the anti-cover-up system comes as part of the initiative to enforce the updated anti-cover-up system, as one of the 47 initiatives of the program, which the Ministry of Commerce is working on, in cooperation with the relevant government agencies. Royal Decree, and its approval was issued by a decision of the Council of Ministers.

National Program to Combat Commercial Coverage