Incentives in Al Khobar
Withholding Tax5% on dividends, 5% on interest, and 15% on royaltiesSource: PwC Worldwide Tax Summaries
Recent Tax DevelopmentsNew Real Estate Transaction Tax (RETT) Law: the RETT Law, under MR No. 84, dated 22 September 2024, has been officially published. The law is set to take effect 180 days from the date of publication in the Official Gazette (11 October 2024).Source: PwC Worldwide Tax Summaries
| Corporate Income Tax | 20% on foreign-owned share of profits Source: PwC Worldwide Tax Summaries |
|---|---|
| Zakat | 2.5% of Zakat base on Saudi/GCC-owned share Source: PwC Worldwide Tax Summaries |
| Personal Income Tax | None on salaries and wages Source: PwC Worldwide Tax Summaries |
| VAT | 15% Source: PwC Worldwide Tax Summaries |
| Withholding Tax | 5% to 20% depending on payment type Source: PwC Worldwide Tax Summaries |
| Recent Tax Developments | Oil and hydrocarbon production is taxed at 50%–85%. Zakat (2.5%) applies to the Saudi/GCC-owned share alongside corporate tax on the foreign-owned share. Source: PwC Worldwide Tax Summaries |