6. Corporate Income Tax Rate

This section discussed the applicable Corporate Income Tax rates in KSA.

The corporate income tax rate is 20% on a non-Saudi’s share in a resident corporation and on income derived by a nonresident from a PE in Saudi Arabia. Other rates apply in the natural gas and hydrocarbons sector.

Zakat

Zakat is an Islamic direct tax levied on the total of the taxpayer’s capital resources which have been held for at least 12 months. Such resources include the company’s capital, net profits, retained earnings, reserves not created for specific liabilities and income that are not invested in fixed assets. Zakat is generally charged at 2.5% on such resources based on the Hijri year.

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