🇸🇦 Saudi Arabia · Tax System
Corporate tax, VAT/GST, personal income tax, capital gains, and filing obligations.
Quick answer
Saudi Arabia levies no personal income tax on salaries. Businesses pay corporate income tax (on non-GCC ownership) or zakat (for Saudi/GCC ownership), plus VAT and withholding tax on certain payments abroad; the authority is ZATCA.
Taxes are administered by the Zakat, Tax and Customs Authority (ZATCA). Foreign-owned profits are subject to corporate income tax, Saudi/GCC ownership to zakat, and VAT applies to most goods and services.
- Corporate income tax is 20% on the foreign-owned share of profit.
- Saudi and GCC ownership is subject to zakat at 2.5%.
- The standard VAT rate is 15%; e-invoicing is mandatory.
Step-by-step
- 1
Confirm your personal tax position
There is no personal income tax on employment income in Saudi Arabia; individuals are not taxed on salaries.
- 2
Register businesses with ZATCA
Businesses register with the Zakat, Tax and Customs Authority (ZATCA) for the relevant taxes.
- 3
Understand the taxes that apply
Identify corporate income tax on the foreign-owned share, zakat on the Saudi/GCC-owned share, VAT, and withholding tax on certain cross-border payments.
- 4
Charge and file VAT
VAT-registered businesses charge VAT and file periodic returns through ZATCA.
- 5
File the annual zakat/tax return
File the annual zakat and/or corporate income tax return within the deadline after the financial year.
- 6
Pay and get advice
Pay any tax/zakat due, keep records, and get advice on withholding tax and treaties.
Checklist
- Personal position confirmed (no salary income tax)
- Business registration with ZATCA
- Applicable taxes identified (corporate income tax, zakat, VAT, withholding tax)
- VAT charged + periodic returns
- Annual zakat/corporate tax return
- Withholding tax on cross-border payments
- Records kept
- Advice on treaties / withholding
Official authorities
- Zakat, Tax and Customs Authority (ZATCA)
Tax, zakat and customs authority.
Frequently asked questions
Is salary taxed in Saudi Arabia?
No — there is no personal income tax on employment income.
What is zakat?
Zakat is a religious wealth levy applied to Saudi and GCC-owned businesses instead of corporate income tax on that share.
Who administers tax?
The Zakat, Tax and Customs Authority (ZATCA).
Official-information aggregation, not legal advice. Always verify on the authority's own site.
Government portals
- Saudi National Portal (my.gov.sa) — Saudi government services portal
- Absher (Ministry of Interior) — Residency (Iqama), visas, and entry/exit services
- Zakat, Tax and Customs Authority (ZATCA) — VAT, zakat, and customs
- Ministry of Investment (MISA) — Foreign-investment licensing (formerly SAGIA)