How is the value added of products calculated?
This program requires a general rule of 40% value added through substantial transformation in Kingdom of Saudi Arabia.
The formula to calculate final value added percetage for products:
Value added of manufactured product – ( Value of imported materials in manufacturing - imposed tax and fees)/ final value of ex-factory product *100
To calculate the value of final products, we subtract the value of all non-originating materials from the value of the product (value of the former manufactory), keeping in mind that the value of imported material shall not exceed 60% from the total price of manufacturing the final product in order to be considered as “ Saudi Made”.