Saudi Arabia Tax Rates
Saudi Arabia does not impose personal income tax on individuals, making it one of the most tax-friendly jurisdictions for expatriates and residents. The Kingdom levies a 20% corporate income tax on foreign-owned businesses while Saudi-owned companies are subject to Zakat (Islamic wealth tax) at 2.5% of their net worth. A 15% VAT was introduced in 2020, and Saudi Arabia continues to diversify its revenue base under the Vision 2030 economic reform program.
Top Income Tax Rate
0%
Corporate Tax Rate
20%
VAT / Sales Tax
15%
Capital Gains Tax
20%
Detailed Tax Information
Income Tax Brackets
Saudi Arabia does not impose personal income tax on individuals, whether Saudi nationals or foreign residents. There is no tax on employment income, investment income, or other personal income. This zero personal income tax policy is a significant factor in attracting foreign talent and has been a longstanding feature of the Saudi tax system. However, Saudi and GCC nationals are subject to Zakat on their business wealth.
| Income Range | Tax Rate |
|---|---|
| SAR 0+ | 0% |
Corporate Tax
Saudi Arabia imposes a 20% corporate income tax on the share of taxable income attributable to foreign shareholders of Saudi-resident companies and to permanent establishments of non-resident entities. Saudi and GCC national shareholders are not subject to corporate income tax but instead pay Zakat at 2.5% of their Zakat base (approximately net worth). Companies with mixed Saudi and foreign ownership are subject to both Zakat (on the Saudi-owned share) and corporate income tax (on the foreign-owned share).
Standard Rate
20%
Capital Gains Tax
Capital gains realized by foreign-owned entities or permanent establishments are included in taxable income and taxed at the standard 20% corporate income tax rate. Saudi and GCC nationals' capital gains are subject to Zakat rather than income tax. Gains from the disposal of shares listed on the Tadawul by resident entities are generally exempt from tax. Individuals do not pay capital gains tax as Saudi Arabia has no personal income tax.
Rate
20%
VAT / Sales Tax
Saudi Arabia introduced VAT at 5% on January 1, 2018, as part of the GCC VAT framework. The rate was tripled to 15% on July 1, 2020, in response to fiscal pressures from low oil prices and the COVID-19 pandemic. VAT applies to most goods and services, with exemptions for certain financial services, residential real estate (rent), and local passenger transport. Education and healthcare services provided by government entities are also exempt.
Standard Rate
15%
Cryptocurrency Tax
Saudi Arabia has not introduced specific tax legislation for cryptocurrency transactions. The Saudi Arabian Monetary Authority (SAMA) and the Capital Market Authority (CMA) have warned against cryptocurrency trading, but it is not explicitly banned. In the absence of personal income tax, individual crypto gains would not be taxed. Corporate entities dealing in crypto would follow standard corporate tax or Zakat rules.
Tax Treaties
Saudi Arabia has approximately 40 double taxation agreements in force, with the network expanding as the Kingdom diversifies its economy and strengthens international trade ties. These treaties provide relief from double taxation on business profits, dividends, interest, and royalties. Saudi Arabia has signed the OECD Multilateral Convention on Mutual Administrative Assistance in Tax Matters and is implementing BEPS recommendations.
Treaty Network
40
Double taxation agreements
Major treaty partners:
Key Details
Relocate to Saudi Arabia
See how much you could save by moving here from your current country.
+$15K
Tax in United States
$24K
24.4% effective
Tax in Saudi Arabia
$10K
9.8% effective
You Save
60%
less tax annually
US Citizens: Important Note
US citizens are taxed on worldwide income regardless of residence. You'll still need to file US taxes, though the Foreign Earned Income Exclusion and Foreign Tax Credit may reduce your liability.
