Rent paid to non-resident landlord
Our landlord lives abroad. WHT on rent?
The situation
Rent paid to non-residents is subject to 5 percent WHT. The tenant company withholds it from each rent payment.
The law
- Art 68, Income Tax Law and Art 63, Implementing Regulations: Residents and PEs withhold tax on payments to non-residents from a Saudi source at 5, 15 or 20 percent
What it means for you
Example: annual rent SAR 120,000 paid in quarterly instalments of SAR 30,000: WHT SAR 1,500 on each payment, due by the 10th of the month after each payment. Deduct it from the amount paid to the landlord and issue a certificate.
What to do
- Apply 5 percent.
- File.
- Issue certificate.
We can do this for youMonthly withholding tax on payments to non-residents: rates, return and payment by the 10th: SAR 750