Saudi mulls tax relief for global companies relocating regional HQs

Saudi mulls tax relief for global companies relocating regional HQs

DUBAI — Saudi Arabia’s Minister of Investment Khalid Al-Falih said over the weekend that multinational companies that relocate their regional headquarters to Saudi Arabia in 2023 with the goal of securing government contracts are “likely” to receive a degree of tax relief. 

Executives said the details are vague and they felt uncertain, as many believe there’s a possibility that they can be double taxed between Riyadh and other Gulf states, the report stated. 

In an interview with the Financial Times, Falih said an announcement would soon be made to clarify the regulations but did not mention an exact date. He added that operations outside Saudi Arabia “will be taxed in those entities’ country of operations.” 

“They will not be intermingled or mixed with the regional headquarters,” said Falih. 

Falih and Saudi Arabia’s Justice Minister Walid Al-Samaani granted three foreign law firms licenses to practice in the country on the sidelines of the International Conference on Justice that began on Sunday in Riyadh, reported the country’s government news agency SPA. 

These are the first licenses granted to foreign law firms in the kingdom after it made amendments to its Code of Law Practice impacting how licenses are regulated and approved by the Cabinet. 

Ministers of Justice and