Saudi Gazette report

RIYADH — The Ministry of Commerce has posted a reminder on the deadline for correcting tasattur violations, which expires on Wednesday, February 16.

The ministry urged all Saudi and non-Saudi commercial establishments and businesses to take advantage of the grace period before the deadline and quickly submit requests for correction by visiting the ministry’s website mc.gov.sa.

The tasattur (or cover-up) is the local term for the common practice of a Saudi citizen allowing a non-Saudi to engage in commercial or industrial activities in his name in return for a fixed payment periodically.

The ministry said all those who heed the warning and end the practice by submitting a request for correction will be exempted from penalties prescribed in the law and other consequences. They will also be exempted from paying income tax retroactively if they ensure the continuance of practicing commercial activities in a systematic and legal manner.

The National Program to Combat Commercial Concealment (tasattur) warned the violating establishments of deterrent penalties of imprisonment of up to 5 years or a fine of SR5 million or both, and confiscation of illegal assets and funds of those involved in the financial crime.

The program allows several options for those who wish to apply for corrective measures, including a partnership between a citizen and a non-citizen, or registering the ownership of the facility in the name of a non-citizen, or for the citizen continuing to engage in economic activity by introducing a new partner in the facility.

In addition to other options that include the citizen’s disposal of the establishment by sale or assignment, or dissolution of the establishment, and a non-citizen obtaining the privilege of residency, or his departure from the Kingdom permanently.

The authorities had earlier extended the corrective period by another six months starting from Aug. 23, 2021 to Feb. 16, 2022.