The corporate tax rate for foreign owned companies in the Kingdom of Saudi Arabia is 20% of the net adjusted profits. This applies to all foreign owned companies, regardless of their size or industry.

There are a few exceptions to the 20% corporate tax rate. For example, companies that are involved in oil and gas production are subject to a different tax rate, which depends on the size of their investment.

The corporate tax rate is applied to the net adjusted profits of a company. This means that the company’s profits are first reduced by any expenses that are deductible for tax purposes. These expenses can include things like salaries, rent, and depreciation.

The corporate tax rate is due on a quarterly basis. Companies are required to file their tax returns and pay their taxes by the end of the month following the end of each quarter.

There are a number of tax incentives available to foreign owned companies in Saudi Arabia. These incentives can help to reduce the overall tax burden on a company. Some of the available tax incentives include:

• Tax holidays. Companies that invest in certain industries or regions can be eligible for tax holidays. This means that they are exempt from paying corporate taxes for a certain period of time.
• Investment allowances. Companies that invest in certain industries or regions can be eligible for investment allowances. This means that they can deduct a certain amount of their investment from their taxable profits.
• Tax credits. Companies can also be eligible for tax credits for certain expenses, such as research and development expenses.

The tax incentives available to foreign owned companies in Saudi Arabia can be complex. It is important to consult with a tax advisor to determine which incentives are available to a particular company.

Arnifi is digital first Corporate service provider helping companies enter the Middle East region, starting with UAE and Saudi Arabia markets. Founded and backed by professionals from Amazon, Souq and other large companies operating in KSA – the team understands what it takes to succeed as a startup in both UAE and Saudi Arabian markets, apart from going through the setup process multiple times.

Arnifi will provide a truly digital experience to entry and scale up of companies both UAE and Saudi Arabia. The Arnifi promise is simple, yet revolutionary, use technology and a great team to provide transparency, efficiency and great customer experience in the whole process.
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