Category: Saudi Arabia – Tax

Saudi Arabia offers preferential customs duty rates for approved industrial projects as part of its economic diversification strategy under Vision 2030. These incentives aim to attract foreign and domestic investment, promote manufacturing, and strengthen the Kingdom's industrial base. Corporate taxpayers...

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The concept of Permanent Establishment (PE) is crucial for non-resident entities doing business in Saudi Arabia. Determining whether a PE exists can significantly affect tax liability, Zakat obligations, and compliance requirements under the Zakat, Tax and Customs Authority (ZATCA) regulations....

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Corporate taxpayers in Saudi Arabia must carefully manage pension contributions and employee benefit expenses to ensure they qualify for tax deductions under the Kingdom’s tax and Zakat regulations. This guide explains the deduction eligibility, statutory caps, and compliance requirements to...

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For foreign companies operating in Saudi Arabia through branches, understanding the non-deductibility rules for payments to the head office is essential for tax compliance. The Zakat, Tax and Customs Authority (ZATCA) enforces specific restrictions to prevent profit shifting and ensure...

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Saudi Arabia imposes excise tax on certain goods deemed harmful to health or the environment, including tobacco products, soft drinks, and energy drinks. For corporate taxpayers, understanding excise tax obligations is crucial to maintaining compliance with the Zakat, Tax and...

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In Saudi Arabia, related-party transactions must comply with the arm’s length principle to ensure that taxable income is not distorted by inflated prices. Corporate taxpayers engaging in cross-border or domestic transactions with affiliates must meet strict transfer pricing documentation and...

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Occupational hazard insurance is a crucial component of workplace safety compliance in Saudi Arabia. Employers are legally required to contribute to the Occupational Hazards Branch of the General Organization for Social Insurance (GOSI) to protect employees against workplace injuries and...

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Saudi Arabia imposes withholding tax (WHT) on payments made to non-resident entities and individuals for services rendered. These WHT rates range from 5% to 20% depending on the nature of the payment. This guide will help corporate taxpayers in Saudi...

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For corporate taxpayers in Saudi Arabia, understanding non-deductible expenses is critical to ensure compliance with the Zakat, Tax and Customs Authority (ZATCA) regulations. This guide outlines the types of costs that cannot be deducted when calculating taxable profits — including...

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In Saudi Arabia, the Zakat, Tax and Customs Authority (ZATCA) strictly prohibits the deduction of bribes, kickbacks, facilitation payments, and other unlawful expenditures when calculating the taxable base for corporate income tax purposes. This guide explains the legal basis, what...

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