Saudi Arabia announced a new package of tax incentives to multinational companies for a period of 30 years

The Kingdom of Saudi Arabia, on Tuesday, unveiled a fresh set of tax benefits, which include a 30-year income tax rate reduction for multinational corporations who relocate their regional headquarters to Riyadh. The Zakat, Tax and Customs Authority, the Ministry of Finance, and the Ministry of Investment jointly announced the move as part of their effort to promote and streamline the process for foreign businesses looking to establish regional headquarters in Saudi Arabia.

The Saudi Ministry of Investment and the Royal Commission for Riyadh City jointly launched the programme to draw foreign corporations' regional headquarters to Saudi Arabia. By offering a range of advantages and unique support services, the programme seeks to draw in foreign businesses to establish their regional headquarters in Saudi Arabia and position the Kingdom as their top option in the Middle East and North Africa.

Foreign firms' regional headquarters are eligible for a tax exemption package for a duration of thirty years, that comprises a zero-percentage income tax on their corporations and withholding tax on permitted operations. According to the Saudi News Agency, these businesses will be eligible for the tax exemption package as of the regional headquarters licence issuing date.

In addition to other benefits like flexibility in Saudization requirements, attracting executives and distinctive competencies to work at the regional headquarters, Minister of Investment Khalid Al-Falih stated that offering tax incentives to international companies' regional headquarters in the Kingdom is a significant incentive to make the Kingdom a major centre for those regional headquarters in the region. According to the minister, the Kingdom's unique skills and knowledge, together with its advantageous position and promising future, have drawn more than 200 businesses to the initiative.

The new tax exemptions on regional headquarters operations, according to Finance Minister Mohammed Al-Jadaan, would provide the regional headquarters of foreign corporations operating in the Kingdom with more stability and clarity. This will improve their ability to plan for when they move their headquarters to the Kingdom and want to grow their operations in the area.