Saudi income tax law pdf

Any person subject to tax in accordance with this law. Any person subject to tax in accordance with this law activity. Below is a brief overview of the value added tax vat, along with useful instructions for businesses eligible to participate in the vat in the kingdom of saudi arabia. The tax base is the nonsaudi share of income from activities in saudi arabia, less allowable expenses in accordance with the tax laws for a. Citizens of gulf cooperation council countries gcc are treated as saudis. A number of amendments were made to certain articles of the saudi arabian ksa income tax law tax law pursuant to royal decree no m1 on 29121438 ah september 20, 2017. Income tax shall be applied on nonsaudi partners shares in the saudi private sector, whether they are natural or legal persons, resident or nonresident. A commercial activity in all its forms, or any vocational.

The applicable income tax rate is 20%, with the exception of tax rates for the gas and oil industries. Saudi arabia pkf assurance, audit, tax, advisory and. Amendments to the implementing regulations of the tax law author. Tax in saudi arabia consists primarily of corporate income tax, withholding tax and. A commercial activity in all its forms, or any vocational, professional or other similar activity for profit. The english version of the following documents is for guidance only. A natural person is considered to be a resident of the kingdom during a tax. Saudi arabian tax law does not distinguish between different categories of income. Saudi arabia highlights 2019 deloitte united states. Although the saudi arabian tax regulations do not address taxation of. Income tax imposed in accordance with this law person.

Saudi arabia and nonresident companies with income subject to tax from sources within the kingdom are chargeable to tax. Financial times saudi arabia considers income tax for foreign residents. Taxable income income tax generally is levied on a nonsaudis share in a resident corporation, unless the corporation is traded on the saudi stock exchange, in which case zakat is levied. Gross income consists of all gains, profits or other net income arising from.