Saudi Arabia exempts global firms from 30 years of income tax

Saudi Arabia exempts global firms from 30 years of income tax

ALBAWABA – In a new step towards attracting foreign investments and global companies, the Saudi Arabian official Gazette has announced the kingdom’s plans to award eligible Multinational Corporations with an exemption from income tax rate for corporate entities as well as withholding taxes for 30 years, available right after they issue a license for a regional headquarters located in the kingdom.For executives positioned at these local offices, these enterprises will also be able to enjoy lowered Saudization obligations and simplified work visa procedures for their spouses, with the initiative taking effect right with the publication of it. With more than 200 international companies moving their regional headquarters to Saudi Arabia after the government announced it would not be providing any contracts to any international business or corporation having a Middle Eastern headquarters outside of Saudi Arabia by Jan. 1 2024.Article 4 of the new regulations mentions the ability to potentially renew the tax incentive after the 30-year period ends, with Article 5 outlining financial requirements for these firms, such as possessing a valid license from the Ministry of Investment, having proper assets in Saudi Arabia and generating revenue through approved means in the kingdom.Many international companies from a variety of