Tax & Zakat
Income Tax
Income tax is applied to resident capital companies on the shares of non-Saudi partners in them, whether they are natural or legal persons, residents or non-residents. The provisions of the law also apply to non-resident persons, whether natural or legal, Saudis or non-Saudis, who practice the activity. In the Kingdom through a permanent entity there, or they generate income from sources in the Kingdom , Income tax is imposed at a rate of 20% on the profits of the foreign or invested company
Value Added Tax (VAT
It is an indirect tax imposed on all goods and services purchased and sold by establishments, with some exceptions. Value-added tax is applied in more than 160 countries around the world, as it is considered a basic source of income that contributes to strengthening countries’ budgets. Value-added tax is imposed at every stage of the supply chain, starting from production, through distribution, until the final sale of the good or service. The Kingdom began implementing the tax at the beginning of 2018 AD, and its value was set in January of that year to be equal to 5%. By May 2020, a royal order was issued to amend the value-added tax system and raise its rate to 15%.
Withholding Tax
Cybersecurity implementation is a It is a direct tax deducted from the amounts received by a non-resident from a source in the Kingdom The withholding tax began to be implemented in 2004. The value of the withholding tax ranges between 5-20%, and its basic condition is that the source of income be from the Kingdom of Saudi Arabia.