Income Subject to Tax in KSA

Following are the Income Subject to Tax in KSA, we must read and understand Basic Concepts in Saudi Income Tax that provides basic Introduction to Saudi income tax law.

1.Loan charge (proceeds) to a non-resident in any of the following cases:

a)The debt is secured by movable or immovable property located in the Kingdom,

b)The borrower is a resident of the Kingdom, and

c)The loan is related to an activity carried out in the Kingdom.

2.Insurance/reinsurance premiums in any of the following:

a)Insured asset is located in the Kingdom,

b)The insurer is a resident of the Kingdom,

c)Insurance of activities or risks related to activities carried out in the Kingdom.

3.Income derived from technical or consulting services in any of the following:

a)The service is given to a person resident in the Kingdom,

b)The service is related to an activity carried out in the Kingdom.

4.Income of a capital company from all of its operations, inside and outside the Kingdom

5.Income from movable or immovable property attributed or related to activities in the Kingdom carried out by a person resident in the Kingdom.

6.Income from sale of goods or merchandises manufactured or produced in the Kingdom.

7.A Contract of delivery of goods to the Kingdom, including the contracts for freight and insurance of these goods, is not considered to be derived from an activity in the Kingdom unless it includes associated work performed in the Kingdom, such as domestic transportation, installation, training or other similar work. In such case, only associated work is considered to be derived from an activity in the Kingdom.

The following services are considered performed in the Kingdom in any of the following:

a)Work required for a service is carried out in full or in part in the Kingdom even though the service is remotely executed (performed). The physical presence of a service provider is not required.

b)Work performed on board of an airplane or ship that works for a person carrying out an activity in the Kingdom.

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