Incentives in Riyadh
CityCalc Insight
Regional HQ (RHQ) status is the market access mechanism: without it, Saudi government contracts are unavailable from 2024. RHQ benefits include a 10-year Saudisation waiver.
RHQ: Saudisation Exemption10 yearsindicative
Corporate Tax (Foreign)20%indicative
Zakat (Saudi/GCC)2.5%indicative
Personal Income TaxNoneindicative
| VAT | 15% Source: PwC Worldwide Tax Summaries |
|---|---|
| Special Economic Zones | NEOM, KAFD, King Abdullah Economic City, and others |
| Foreign Ownership | 100% in most sectors under the 2021 Companies Law |
| MISA | Ministry of Investment — foreign investor licensing and support |
| Vision 2030 FDI Target | $3 trillion cumulative by 2030 |
| 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 |
| 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 |