TaxSavvySA

100 percent foreign owned company tax

We are 100 percent Indian owned. Do we pay Zakat or tax?

The situation

A Saudi company wholly owned by non-Saudi, non-GCC shareholders pays income tax at 20 percent on net adjusted profits and no Zakat.

The law

  • Income Tax Law (Royal Decree M/1 of 1425H), corporate income tax: 20 percent on net adjusted profits of the non-Saudi, non-GCC share

What it means for you

Example: profit SAR 600,000: tax SAR 120,000. Withholding tax applies on dividends paid abroad at 5 percent. Audited accounts are filed with the return.

What to do

  1. Register for income tax.
  2. Prepare audited accounts.
  3. File and pay.

We can do this for youAnnual income tax return for foreign-owned and mixed companies: 20 percent CIT on the foreign share plus Zakat on the Saudi share: SAR 7,500

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