Regulations for Rectifying the Status of Violators of the Anti-Concealment Law

First: General Provisions

‎1- The words and phrases used in this Regulation shall have the meanings set forth in Article (One) of the Anti-Concealment Law issued by Royal Decree No. (M/4) dated 1442/01/01 AH.
2- This Regulation aims to provide an opportunity for Saudi and non-Saudi practitioners of economic activities who wish to correct their status in accordance with the provision of Clause (Second) of Royal Decree No. (M/4) dated 1/1/1442 AH, to define the options and mechanisms for correcting status, and to clarify the procedures for reviewing correction requests.
3- Anyone who submits a request to the Ministry to correct their status—through one of the options outlined in Clause (Second) of this Regulation—before the date 15/1/1443 AH, shall be exempted from the penalties stipulated in the Anti-Concealment Law issued by Royal Decree No. (M/22) dated 4/5/1425 AH, and the Anti-Concealment Law issued by Royal Decree No. (M/4) dated 1/1/1442 AH, as well as from any other penalties resulting from the crime and its proceeds subject to correction, and from paying income tax retroactively.
4- This Regulation does not prejudice the private rights arising from transactions concluded by Saudis or non-Saudis.

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Secondly: Options for Rectifying Situations

  • For the Saudi or non-Saudi who practices an economic activity in violation of the provisions of the Anti-Concealment Law issued by Royal Decree No. (M/22) dated 4/5/1425 AH, and the Anti-Concealment Law issued by Royal Decree No. (M/4) dated 1/1/1442 AH, to submit to the Ministry a request to correct his status, attached with the disclosure form prepared by the Ministry for this purpose in accordance with the provisions of this Regulation.

  • The correction shall be according to any of the following options:

    • 1- Partnership in the establishment between the Saudi and the non-Saudi, after fulfilling the legal requirements that enable the non-Saudi to enter as a partner in the establishment.
      2- Registering the ownership of the establishment in the name of the non-Saudi, by agreement between the Saudi and the non-Saudi to transfer the ownership of the establishment to the non-Saudi after fulfilling the legal requirements that enable him to own the establishment.
      3- The Saudi continues to practice the economic activity by introducing a new partner (Saudi or licensed foreign investor) in the establishment after fulfilling the legal requirements, and registering that with the Ministry.
      4- The Saudi disposes of the establishment by sale, waiver, or dissolution of the establishment, in accordance with the legal procedures.
      5- The non-Saudi obtains the privileged residency permit in accordance with the provisions of the Privileged Residency Permit Law, and completes the correction of his status by benefiting from the advantages provided by the privileged residency permit.
      6- The non-Saudi leaves the Kingdom permanently after submitting a pledge that there are no special rights arising from any transactions he concluded in the establishment, and announcing that in the means determined by the Ministry to invite those entitled to submit their claims within a period not exceeding (thirty) days from the date of the announcement.

Third: Procedures for Reviewing Applications for Rectifying Status

Fourth: Contents of the Declaration Form

  • The disclosure form stipulated in paragraph (Second) of this regulation must include the following:

    • 1- Personal information of the relevant parties, including contact details.
      2- Commercial register data of the establishment, including: type of activity, number of branches - if any -, duration of activity practice, proceeds to be included in the correction - if any -, and data of licenses or permits to practice the activity, if any.
      3- The option for the required status correction based on this regulation.
      4- Agreement between the Saudi and non-Saudi parties on correcting the establishment's status, if any.
      5- In case the Saudi party wishes to transfer ownership of the establishment to another party, the data of the person to whom the ownership will be transferred must be provided.
      6- Any other data related to the activity, establishment, or its owner, requested by the Ministry for the purpose of completing the claim.

Fifth: Final Provisions

1- Any person who submits a request to regularize their status in accordance with this Regulation shall enjoy all the rights granted to them under the relevant laws, including the right to residence and movement.
2- The exemption stipulated in this Regulation does not include those who have been apprehended for committing a crime or violation under the Anti-Concealment Law issued by Royal Decree No. (M/22) dated 4/5/1425 AH, or the Anti-Concealment Law issued by Royal Decree No. (M/4) dated 1/1/1442 AH, before submitting their request to regularize their status, or those who were referred to the Public Prosecution or the competent court before submitting their request.
3- The Ministry, in coordination with the concerned authorities, shall establish the necessary procedures to implement this Regulation, including the forms required to execute the options contained therein.