King Abdullah University of Science and Technology

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The CFHRO is responsible for the supervision and control of the financial affairs of the University, including tax matters.

The Tax Manager, reporting to the Director of Finance has day-to day authority to manage the tax affairs of the University, supported by a small dedicated tax team. 

The Tax Manager with the support of the Director of Finance ensures that the team:

  • Is comprised of appropriately qualified and experienced personnel and is suitably resourced.
  • Is committed to ongoing continuing professional development.
  • Proactively acts as business partner to academic and non-academic departments across the University to provide timely advice and guidance as required to ensure compliance and to identify opportunities.
  • Provides regular internal training and reference material to staff to highlight tax issues and treatments particular to the University's business, together with changes in legislation.
  • Seeks professional advice from appropriate external advisors where the tax treatment of a specific transaction is uncertain, requires external consideration or confirmation, or requires specialist knowledge.
  • Has appropriate internal processes and controls in place across the University with the aim of ensuring accurate and complete tax and financial records.

Tax Authorities

The University seeks to have a transparent and constructive relationship with tax authorities wherever it operates. All dealings with tax authorities and other regulatory bodies are conducted professionally, courteously and collaboratively in a timely manner. In respect of its relationship with General Authority of Zakat and Tax (GAZT) in the KSA, the University seeks to:

  • Submit all returns and payments to meet GAZT deadlines.
  • Have communication and correspondence with the University's dedicated Customer Relationship Manager.
  • Make fair, accurate and timely disclosures as soon as reasonably practical once they have been identified.
  • Work collaboratively with GAZT should disagreements arise to resolve issues by agreement (where possible).
  • Proactively enter into dialogue with GAZT with regard to issues where treatment is uncertain.

Tax Policy

The University conducts its tax affairs consistent with the following principles:

 a. Comply with all relevant tax laws, rules, regulations and reporting requirements wherever it operates.

 b. Ensure that the tax strategy is at all times consistent with the University's approach to risk and its core values.

 c. Apply due diligence and care to the management of risks associated with tax matters and ensure that governance and assurance procedures are appropriate.

 d. Foster constructive, professional and transparent relationships with tax authorities, based on concepts of integrity, collaboration and mutual trust.

 e. Minimize the tax cost of adopted business models, but not enter into transactions that have the main purpose of gaining a tax advantage or intentionally interpreting tax law in a way contradictory to the original intention of the legislation.

Tax Risk Management

Diligent professional care and judgment is employed when assessing tax risks. In reviewing risks and in line with the Tax Policy, the following will be considered:

  • The maintenance of the University's reputation.
  • The tax benefits and impact on the University's reported results compared to the resource and financial costs involved, including risks of penalties and interest.
  • The wider consequences of potential disagreement with the tax authorities, including any possible impact on the ongoing relationship with authorities.

Tax strategy

This tax strategy applies to the University and its subsidiaries. In this strategy, unless the context otherwise requires, references to the "University" are to the University and its subsidiaries.

References to "tax", "taxes" or "taxation" are to KSA taxation and to all corresponding worldwide taxes and similar duties in respect of which the University or one of its subsidiaries has any legal responsibility.

  • KAUST UK

KAUST UK Limited is a wholly owned subsidiary of KAUST, the parent entity which is a Multi-National Entity for UK tax purposes. KAUST UK Limited is registered in the United Kingdom (UK) and adheres to the tax laws and regulations administered by the UK tax authority, HMRC. KAUST UK Limited is not an active trading entity and, as such, is exposed to minimal tax risk. It does not engage in any intercompany activities between tax jurisdictions which result in transfer pricing implications. KAUST UK Limited engages local tax advisors to assist with its tax obligations and requirements.  

Tax policy, Tax risk management and Relationship with Tax Authorities

KAUST UK Limited applies the same general principles as its parent entity with regards to Tax policy, Tax risk management and its relationship with the local tax authority.