Saudi Arabia » Taxes

Transfer Tax	Zakat	Income Tax	Corporate Income Tax
0

Transfer Tax

There are no stamp duties or other documentary taxes.

Zakat

Zakat is a tax levied (in certain circumstances) on Saudi Arabian citizens, wholly owned Saudi Arabian companies and the Saudi Arabian shareholding (i.e. equity) in part Saudi owned Saudi Arabian companies. Zakat is levied at a fixed rate of 2½ per cent. per annum.

Income Tax

Income tax is levied on the income of non-Saudi Arabian businesses which generate income in Saudi Arabia.

Corporate Income Tax

Foreigners are required to pay corporate income tax in proportion to their equity interest in the business. Corporate income tax rates are between 25% and 45%, depending on profit levels, with petroleum and other hydrocarbon-producing companies being charged a flat rate of 85% of net operating income. Most business expenses incurred in Saudi Arabia are tax deductible.

Sales Tax

There is no sales tax imposed on goods or services in Saudi Arabia.