Category: Saudi Arabia – Tax

In Saudi Arabia, corporate taxpayers can carry forward Net Operating Losses (NOLs) to reduce taxable income in future years. However, under ZATCA’s tax rules, the offset is limited to 25% of annual taxable profit for each year. This blog explains...

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In Saudi Arabia, capital gains tax is a key component of the corporate income tax regime. For corporate taxpayers, gains from the disposal of assets, shares, and other capital investments are generally taxed at the 20% standard corporate tax rate,...

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Saudi Arabia’s corporate income tax framework provides a valuable capital gains tax exemption on the disposal of listed Saudi shares under specific conditions. This incentive is designed to encourage investment in the Kingdom’s capital markets. However, failure to comply with...

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Under Saudi Arabia’s Value Added Tax (VAT) Law, corporate taxpayers can recover input VAT on capital assets, subject to specific rules and adjustment mechanisms. This guide provides an in-depth overview of capital asset input tax deduction eligibility, adjustment periods, and...

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For corporate taxpayers in Saudi Arabia, compliance with the Zakat, Tax and Customs Authority (ZATCA) audit requirements is a crucial part of filing an accurate and timely tax return. This detailed guide explains the audit documentation standards, financial statement requirements,...

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For corporate taxpayers in Saudi Arabia, understanding how to apply Double Tax Treaty (DTT) benefits in Withholding Tax (WHT) is essential for optimizing cross-border payments. This guide explains the difference between automatic treaty rate application at the time of payment...

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For corporate taxpayers in Saudi Arabia, Withholding Tax (WHT) obligations can be significantly reduced by applying benefits under applicable Double Tax Treaties (DTTs). This guide explains how to determine treaty eligibility, apply reduced rates in WHT returns, and remain compliant...

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The Advance Pricing Agreement (APA) mechanism, as adopted under Saudi Arabia’s Transfer Pricing Bylaws, provides corporate taxpayers with a proactive way to determine acceptable transfer pricing methodologies with the Zakat, Tax and Customs Authority (ZATCA) in advance. This guide explains...

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Understanding allowable business expense deductions under Saudi Arabia’s corporate tax law is essential for corporate taxpayers aiming to reduce taxable income and optimize financial performance. This comprehensive guide covers deductible expenses, compliance requirements, and practical tips for maximizing legitimate tax...

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Saudi Arabia’s Regional Headquarters (RHQ) Program offers unprecedented 0% corporate income tax on qualifying RHQ income and 0% withholding tax (WHT) on eligible payments. Designed for multinational corporations, this incentive supports Vision 2030’s goal of attracting foreign investment, creating jobs,...

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