Addendum announcement from Mobile Telecommunications Company Saudi Arabia (Zain) further to its previous announcement on 11/07/2015 related to receiving a letter from the General Authority of Zakat and Income Tax (GAZT) requesting additional payment of SAR 619M, of which SAR 352M are related to Zakat and SAR 267M to withholding Tax (WHT), for the financial years of 2009, 2010 and 2011.

Zain appealed this claim for additional payments on 27/08/2015, and was able to have the amount of SAR 352M related to Zakat revoked entirely. In addition, SAR 219M of the withholding tax claim was also revoked.

Zain will continue with its appeal of the remaining WHT amount of SAR 48M.

To appeal before the High Appeal Committee (HAC), Zain completed the required conditions in the Articles of the Saudi Tax Law, by paying the invoices issued by GAZT amounting SAR 48M on 16/11/2017 related to WHT.

Zain has also issued a bank guarantee for the amount of SAR 43M related to the penalty generated from the delay in paying the WHT.

Based on the above, Zain received the reassessment letter for the paid amount and presented its objections before the HAC on the preliminary Appeal Committee opinion on 19/11/2017.

There is no financial impact as the company has sufficient provisions to cover these amounts.