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Retained

  • Statutory Tax Rate 20
  • Surtax Based on Taxable Income 0
  • Surtax Based on Statutory Tax 0
  • Surtax Deductible from Taxable Income 0
  • Statutory Tax Deductable 0
  • Effective Tax Rate 20

Statutory Tax Rate

The standard corporate tax rate is 20%. For oil and hydrocarbon producers, a rate of 50% to 85% applies; with a lower rate applying for companies with a higher capital investment (prior to 2017, a fixed 85% rate applied). For natural gas investment activities, the tax rate is 20% (30% prior to 1 January 2018). The rates apply for resident companies (only with respect to aliens’ share), resident aliens carrying on business activities (as defined), and non-resident persons (whether Saudi or alien) operating in Saudi Arabia through a permanent establishment. For Saudi and GCC holders, Zakat applies at the rate of 2.5% with a separate tax base.