Saudi Arabia announced – Tuesday – that it will provide a new tax incentive package for foreign companies whose regional headquarters are located in the Kingdom, including exemption from income tax.
The Saudi News Agency (SPA) said that the Ministry of Investment – in coordination with the Ministry of Finance and the country’s Zakat, Tax and Customs Authority – announced “the provision of a new tax incentive package, for a period of 30 years, to support the program to attract the regional headquarters of international companies.”
She indicated that this step comes to “encourage and facilitate the procedures for international companies to open their regional headquarters in the Kingdom of Saudi Arabia.”
The agency added, “The tax exemption package for regional headquarters for a period of 30 years includes a 0% rate for both income tax on regional headquarters entities, and withholding tax for approved activities of regional headquarters.”
The agency continued, “International companies will benefit from the package of tax exemptions from the date of issuance of the regional headquarters license.”
The program to attract the regional headquarters of international companies aims to make Saudi Arabia “the first choice for these companies in the Middle East and North Africa region.”
The agency quoted Saudi Investment Minister Khalid Al-Falih as saying that the program has so far attracted 200 foreign companies.
stability
The Saudi Press Agency also quoted Finance Minister Mohammed Al-Jadaan as saying, “The new tax exemptions will give the regional headquarters of international companies in the Kingdom more clarity of vision and stability.”
Al-Jadaan added, “We look forward to welcoming more international companies to participate in projects in all sectors, including mega projects, and our preparations to host major events such as the Asian Winter Games in 2029 and the Expo in 2030.”
In February 2021, Saudi Arabia – the world’s largest oil exporter – announced plans to stop awarding government contracts to companies whose regional headquarters are not located in the country by January 1, 2024.
Foreign companies rushed to meet the Saudi requirement to move their regional headquarters after the Kingdom said last October that it would adhere to the deadline it announced.
Source : Reuters + Saudi News Agency (SPA)
