Tax Rate of the Tax Base in Saudi Arabia

While dealing or filing for taxes in Saudi Arabia one must know what is the Tax Rate of the Tax Base in Saudi Arabia. The Saudi Government has set the tax rate of the tax base at twenty percent (20%).

The 20% tax rate is applicable on a resident capital company, a non-Saudi resident natural person who conducts business, a nonresident person who conducts business in the Kingdom through a permanent establishment.

(a)   The tax rate of the tax base is twenty percent (20%) for each of the following:

(1)    A resident capital company.

(2)    A non-Saudi resident natural person who conducts business.

(3)    A nonresident person who conducts business in the Kingdom through a permanent establishment.

(b)The tax rate of the tax base for a taxpayer engaged only in natural gas investment activities is thirty percent (30%).

(c)The tax rate of the tax base for a taxpayer engaged in the production of oil and hydrocarbon materials is eighty five percent (85%).

(d)Withholding tax rates are those specified in Withholding tax section.

Read more blogs here and for information on ZATCA click here.

For more training courses on Tax/ VAT click here and following are other taxation related training programs for Saudi Arabia: –

• VAT Fraud Training in Saudi Arabia
• VAT Training in Saudi Arabia
• Advanced Tax Fraud Investigation Training in Saudi Arabia
• Zakat and Tax Training in Saudi Arabia