Saudi Arabia unveils tax relief program to attract international businesses

Posted on February 26, 2024   |  

The Kingdom of Arabia initiates a program to lure international companies by offering a 30-year income tax exemption for regional headquarters.

Incentives for foreign firms establishing regional headquarters include tax exemptions and deductions on payments to non-residents.

Withholding tax on regional headquarters' payments to non-residents, like dividends and service fees, is waived.

Starting January 1, 2024, the Kingdom plans to stop contracting with non-local companies to boost local job opportunities and economic diversification.

Eligible activities in Saudi Arabia must generate revenue and maintain operational expenses, with at least one resident director and adequate full-time employees.

These measures aim to diversify the economy of the world's largest oil exporter and attract foreign investment.