Taxation

Tax reforms are part of the Saudi 2030 Vision and the economic development in Saudi Arabia. Recently, Saudi Arabia introduced the value-added tax (VAT) and real estate transaction tax (RETT). There is no individual income tax regime in Saudi Arabia; however, income tax or Zakat is imposed on registered corporations.

Persons Subject to Tax

Corporations in Saudi Arabia should register with Zakat, Tax and Customs Authority. Further, companies are subject to different taxation system (income tax or Zakat) depending on the company's owner's nationality, discussed as follows:

Persons Subject to Tax or Zakat

Companies %100 owned by Saudi nationals or GCC nationals are subject to Zakat only.