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Navigating the evolving tax landscape in Saudi Arabia is essential for every business operating or planning to expand into the Kingdom. At J K Management Consultancies, we simplify the complexities of corporate tax in Saudi Arabia, ensuring compliance, strategic planning, and peace of mind.
What is Corporate Tax in Saudi Arabia?
Corporate tax in Saudi Arabia is a direct tax imposed on the net profits of foreign companies and non-Saudi partners in mixed entities. The corporate income tax is currently levied at a flat rate of 20%, as per the Zakat, Tax and Customs Authority (ZATCA) guidelines.
Who Needs to Pay Corporate Tax in Saudi Arabia?
You’re required to pay corporate tax if:
- Your company is wholly or partially owned by non-Saudis
- You operate as a foreign entity within the Kingdom
- You’re a branch of a foreign company
- You are involved in sectors like oil, gas, or natural resources, which may be taxed at higher rates (up to 85%)
Corporate Tax Rates in Saudi Arabia
| Type of Entity | Applicable Tax |
|---|---|
| Foreign-owned businesses | 20% corporate tax |
| Oil and gas sector entities | 50–85% (depending on specifics) |
| Saudi/GCC-owned businesses | Subject to Zakat (2.5% on Zakat base) |
Corporate Tax Filing Timeline
All businesses must adhere to the ZATCA tax calendar:
- Tax year is typically the Gregorian calendar year
- Tax returns must be filed within 120 days after the fiscal year ends
- Payments are made quarterly, with final reconciliation at year-end
Documents Required for Corporate Tax Filing
- Audited financial statements
- Company commercial registration (CR)
- Tax identification number (TIN)
- Income and expense records
- Ownership structure details
- Any inter-company agreements or transfer pricing data
Recent Updates (2024–2025)
- E-Invoicing (FATOORA)
is now mandatory for most businesses to support transparency and compliance.
- Transfer Pricing Rules
are now applicable to related-party transactions, even in non-multinational settings.
- Saudi Arabia
continues aligning its taxation framework with OECD international standards.
How J K Management Consultancy Can Help
Whether you’re starting a new venture or already running a business in the Kingdom, our team offers:
- Full corporate tax registration and filing support
- ZATCA compliance consultation
- Tax planning & restructuring to reduce liability
- Assistance with e-invoicing & transfer pricing documentation
- Liaison services with the Saudi tax authority
Why Corporate Tax Matters for Foreign Investors in Saudi Arabia
Understanding Saudi Arabia’s corporate tax system is crucial for:
- Investment planning and profit repatriation
- Strategic business structuring
- Gaining a competitive edge in tenders and government contracts
Talk to Our Experts Today
Don’t let tax complexities slow your growth. Contact J K Management Consultancies today for reliable guidance on corporate tax in Saudi Arabia we’ve got your business covered from start to finish.
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