The Kingdom of Saudi Arabia offers one of the world's most attractive tax environments for individuals, making it a highly desirable location for expatriates and investors.
For Individuals:
There is no personal income tax in Saudi Arabia. This means all earned income, including salaries, bonuses, and allowances, is tax-free for residents, regardless of nationality. Furthermore, foreign-sourced income is not subject to taxation within the Kingdom.
For Businesses:
The standard corporate income tax rate is 20% on the adjusted profits of foreign-owned companies and entities with non-Saudi shareholders. This does not generally apply to Saudi-owned companies.
Social Security (GOSI):
The social security system requires contributions to the General Organization for Social Insurance (GOSI). For Saudi nationals, the total contribution is 22% of the employee's salary. For expatriates, the requirement is a 2% employer contribution, which provides access to certain benefits.
Tax Residency:
An individual is considered a tax resident if they:
- Have a permanent place of residence in Saudi Arabia and are present in the country for at least 30 days during the tax year, or
- Are physically present in Saudi Arabia for 183 days or more in a tax year.
This favorable tax regime, combined with its strategic location and growing economy, positions Saudi Arabia as a leading global hub for professionals and businesses.