Saudi company paying a foreign freelancer
We pay a freelancer abroad for services. Is WHT due?
The situation
Payments from a Saudi resident to a non-resident are subject to WHT: technical and consulting services at 5 percent and other payments at 15 percent.
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: SAR 20,000 consulting = SAR 1,000 WHT; if classed as other services, SAR 3,000. File and pay by the 10th. A tax treaty may reduce the rate if documented.
What to do
- Classify the service.
- Withhold the tax.
- File and pay by the 10th.
We can do this for youFreelancers in Saudi Arabia: freelance document for Saudis, legal routes for expats, VAT and tax: SAR 1,500