Gold Division: a tax agreement to neutralize the price of gold from the tax equation

Hani Milad Gayed, head of the General Division of Gold and Jewelery at the General Federation of Chambers of Commerce, announced the adoption of the division’s board of directors for the accounting agreement, which will sign an agreement with its rules with the Tax Authority, which will serve retailers and end all tax disputes for traders with retroactive effect since 2016.

Milad explained that the most important points of the agreement are to neutralize the price of gold from the tax equation and not to include the price of gold in the income of retailers or the tax base of the merchant, which determines the net tax due on him, which is what the retailer has suffered from for a long time and is a general requirement that retailers have been seeking for decades. And the adoption of the net profit (workmanship only) as a tax base for the merchant, for which he is entitled to pay the tax rate. The agreement also provides for the retroactive termination of all tax disputes for retail traders since 2016 based on the new rules contained in the agreement, which are described only as equitable to the rights of traders.

Milad added that the agreement comes as a culmination of the success of negotiations that lasted for a whole year between the Division’s administration and the Tax Authority to clarify all technical points related to the working mechanisms of the retail trade of gold and jewellery, in order to reach the neutralization of the price of gold, which does not exceed being one of the production inputs from the tax equation for retail trade and not to be included in the tax base to the merchant’s income.

He pointed out that the Division spares no effort to defend the interests of all traders and producers and works to overcome all obstacles that impede the smooth flow of production and trade in a manner that guarantees the interests of all parties to the commercial process, including producer, merchant and consumer, taking into account the rights of the state, and works to create continuous communication between merchants and authorities. various government agencies to provide a suitable and healthy commercial environment to serve the commercial life.

Milad added that in the context of digitizing business and keeping pace with the rapid changes and continuous development of the local and global markets, the division launched an official website entitled and an official page on the social networking site to display all changes from reliable sources in the markets to protect consumers who are unaware of market changes.

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