Saudi Arabia Corporate Income Tax
Detailed corporate income tax rates and rules for Saudi Arabia in 2026.
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%
Additional Notes
Companies engaged in the production of oil and hydrocarbons are subject to a separate tax regime with rates ranging from 50% to 85% depending on capital investment. Entities operating in the natural gas sector are taxed at 20%. The Real Estate Transaction Tax (RETT) of 5% applies to property disposals. Saudi Arabia is implementing OECD BEPS recommendations and has introduced Country-by-Country Reporting requirements.
How Saudi Arabia Corporate Tax compares
Saudi Arabia’s corporate tax rate of 20% is the 127th highest of 203 countries TaxAtlas tracks, below the global average of 22.2% and Asia’s regional average of 19.7%.
