🇸🇦 Saudi Arabia Tax Guide - Income Tax, Corporate Tax & Special Regimes

Top income tax None Territorial system

Corporate tax 20.0%

VAT 15.0% standard rate

Tax residency 183 days 58 tax treaties

Saudi Arabia tax profile

Data year: 2026

Tax system: Territorial No personal income tax on employment income. Non-Saudi and non-GCC investors are subject to corporate income tax at 20% on their share of adjusted net profits; Saudi and GCC shareholders are subject to Zakat at 2.5% on the Zakat base instead. Mixed-ownership companies apportion income between CIT and Zakat. Income from oil and hydrocarbon production is taxed at 50–85%. Natural gas investment is taxed under the general income tax law at 20% (NGIT repealed from 2018). Non-employment income of residents may be taxed through a permanent establishment or entity rules; non-residents with Saudi-source income without a PE are subject to withholding tax.
Top PIT rate: No Income Tax
Corporate tax rate: 20.0%
VAT: 15.0%
Capital gains tax: No Capital Gains Tax
Social security (employee): 9.8%
Social security (employer): 11.8%
Social security cap (annual): SAR 540,000
Dividend withholding: 5.0%
Interest withholding: 5.0%
Royalty withholding: 15.0%
Treaty count: 58

Corporate

Corporate brackets
Bracket min	Bracket max	Rate	USD equivalent
SAR 0	and above	20.0%	$0 +

Territorial Exemption

Days threshold: 183 days
Residency rules: Tax resident for a year if either: (1) the person has a permanent place of residence in Saudi Arabia and is present for at least 30 days in the tax year, or (2) the person is present in Saudi Arabia for at least 183 days in the tax year. Part of a day counts as a full day except for persons in transit between points outside Saudi Arabia.
Exit tax: No
CFC rules: No

ZATCA — VAT retail sector guideline (accessed Oct 9, 2026) 15% standard VAT rate; registration and return filing rules
PwC Saudi Arabia — overview (accessed Oct 9, 2026) No PIT, 20% CIT, 15% VAT, Zakat 2.5%, WHT, GOSI, residency tests
PwC Saudi Arabia — corporate taxes on corporate income (accessed Oct 9, 2026) 20% CIT on non-Saudi/GCC shares; oil and gas 50–85%; Zakat 2.5%
PwC Saudi Arabia — corporate withholding taxes (accessed Oct 9, 2026) Domestic WHT 5/5/15; treaty table; service payments 5–20%
PwC Saudi Arabia — corporate tax administration (accessed Oct 9, 2026) Self-assessment; return and final payment within 120 days of year-end
PwC Saudi Arabia — individual residence (accessed Oct 9, 2026) 183-day test or permanent place of residence plus 30 days
PwC Saudi Arabia — corporate other taxes (accessed Oct 9, 2026) VAT 15%, GOSI 9.75%/11.75% Saudi and 2% employer for non-Saudi; SAR 45,000 monthly GOSI base cap
KPMG — Doing business in Saudi Arabia 2026 (accessed Oct 9, 2026) VAT 15%, CIT and Zakat framework, compliance overview

Oct 9, 2026
- Brackets updated
Refreshed for 2026; corrected filing deadline, treaty count, GOSI cap and non-Saudi GOSI note; added corporate bracket and sources (https://taxsummaries.pwc.com/saudi-arabia; https://zatca.gov.sa/en/HelpCenter/guidelines/Documents/Guideline-For-Retail-Sector-under-VAT-Provisions.pdf).

AL Albania Unique Permit for Digital Mobile Workers	$610/mo
EC Ecuador Digital Nomad Visa (Visa Nómada)	$1,446/mo
ME Montenegro Digital Nomad Residence Permit	$1,460/mo
MU Mauritius Premium Visa	$1,500/mo

GE Georgia Small Business Status (1% Tax)	1%
JE Jersey High Value Resident (HVR)	1%
UZ Uzbekistan IT Park Resident Status	1%
SO Somalia Presumptive Tax Regime (PTR)	1.5%