30-year exemption for corporate income tax in Saudi Arabia.

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Saudi Arabia made a significant announcement on Tuesday, December 5, 2023. The kingdom has unveiled a generous tax incentive programme to attract foreign companies to establish their regional headquarters within its borders.

This bold move includes a remarkable 30-year exemption from corporate income tax, showcasing
Saudi Arabia's commitment to fostering a vibrant business environment.

The comprehensive tax exemption package, designed to incentivise foreign companies to choose Saudi Arabia as their regional hub, offers a zero per cent income tax rate for the regional entity and a similar exemption for withholding tax on approved activities for an impressive three decades.

Notably, international companies that avail themselves of these tax benefits will start enjoying them when their licences are issued. This timing adds an extra layer of attractiveness to Saudi Arabia as a prime destination for companies looking to establish a strong regional presence.

Since the programme's launch, Saudi Arabia has already managed to attract the attention of 200 foreign companies, reflecting the immediate interest and trust generated by these lucrative tax incentives. Khaled Al-Falih, Saudi Arabia's Investment Minister, enthusiastically stated, "The new tax exemptions granted on regional headquarters activities will give international companies in the kingdom
more clarity of vision and stability." 

This sentiment echoes the kingdom's commitment to providing a stable and supportive environment for international businesses. Download the PDF article for more insights