Doing Business in Saudi Arabia
In order for foreign investors to set up an organization in KSA, they are required to register with a number of KSA government agencies (outlined below) upon obtaining the required SAGIA investment license: Jadwa Business Services, the leading business advisor in Saudi Arabia assist you through out the process of setting up a business in KSA.
- Chamber of Commerce.
- MoCI in order to obtain a commercial registration (“CR”); after opening a bank account with a local bank in KSA to deposit the Company’s share capital.
- The Labour office.
- The Municipality.
- The General Organization for Social Insurance (“GOSI”).
- The Department of Zakat and Income Tax (“DZIT”).
Taxation in Saudi Arabia
The KSA has two main types of taxes: Sunset based on Islamic concepts and income tax.
Zakat applies to the ownership of the KSA by KSA nationals or other GCC countries (United Arab Emirates, Oman, Qatar, Kuwait, and Bahrain). Sunset is estimated at 2.5% compared to the higher income tax amount. Zakat is owned by the KSA/GCC over higher net income or net wealth at KSA. While the income tax applies to non-GCC property, KSA net income.
The governing body for the administration and collection of sunsets and tax liabilities is the Department of Sunset and Income Tax (DZIT), which is the department of the Ministry of Finance of Saudi Arabia. It is worth noting that as of July 30, 2004, the KSA tax law was completely rewritten for all taxpayers whose fiscal year begins after this effective date. Tax withholding taxes have been in effect since July 30, 2004, regardless of when the fiscal year for the taxpayer began.
Tax and Legal Practice in the Middle East offers experience in jurisdictions across the region with over 500 employees. We at JBS can assist in the following areas:
- indirect taxation (VAT and customs) and fiscal reform
- International taxation
- Global mobility and staffing services
- Legal documentation
- Mergers and acquisitions
- Services for US citizens and green cardholders
- Tax and sunset counseling
- Tax services, management, and accounting
- Transfer pricing