Corporate Tax in Saudi Arabia

The?corporate tax rate in Saudi Arabia?is set at 20%. The?corporate tax rate?in this country averaged 24.72% from 1999 to 2016, achieving an all-time high of 45% in 1999 and an all-time low of 20% in 2006. In this article, our?company formation advisors in Saudi Arabia ?explain different aspects related to the?corporate tax?in this country.

Who is subject to the corporate tax in Saudi Arabia?

In?Saudi Arabia, only foreign investors are subject to?income taxation. Most of the time, local investors, as well as citizens of GCC states, who are considered to be local citizens for local tax purposes, are subject to Zakat, which is an Islamic assessment.?

In those cases when a?business ?is owned by both local and foreign shareholders, the portion of the taxable income attributed to the local interest must acquit the?income tax, while the local share is taxed with the Zakat assessment.

Under the Income Tax Law?in Saudi Arabia, the?income tax?must be acquitted by:

? A resident capital business to the extent of its foreign shareholding;

? A resident foreign natural individual who effectuates his or her activities in the country;

? A foreign individual who effectuates his or her activities in the country through a permanent establishment;

? A foreign individual who receives other income subject to tax from sources in the country;

? An individual who activates in the natural gas investment sectors;

? An individual who activates in the oil and other hydrocarbon production fields;

? A resident capital business in the extent of its shares owned directly or indirectly by individuals who operate in oil and hydrocarbon production. Our?company registration ?consultants?in Saudi Arabia?can provide further information related to this matter.

Our accountants in Saudi Arabia can provide tax advice, which is widely sought by foreign companies and business persons. Making the correct choices and investment implies paying a lot of attention to market trends which have been studied by our specialists who can advise on how to make informed decisions.

The capital of Saudi Arabia, with a population of almost 7 million, is a significant commercial and financial hub in the Middle East. A large portion of Riyadh’s population is foreign, which is why if you plan to immigrate to Saudi Arabia, this can be a great destination for you as an expat.

You must meet specific requirements to be granted residency in Saudi Arabia, which differ depending on the reason for immigration. You can get complete details from our local specialists who can also help you with the drafting of the documents to file for relocation, so do not hesitate to contact us.

Other corporate taxes in Saudi Arabia

Other?corporate taxes in Saudi Arabia?include:

• Dividends tax: received dividends are taxed as income;
• Capital gains: the disposal of shares in a resident company is taxed at 20%. Our?Saudi Arabia company formation?agents can offer more details on the capital gains tax. We also assist in?setting up a company in Saudi Arabia ;
• Surtax: Saudi Arabia does not impose any surtax;
• Foreign tax credit: it does not allow any foreign credit tax.