Working and living in Saudi Arabia can have many benefits, particularly in terms of tax. Find more information in this article.
Without considering double taxation, Saudi Arabia can be an ideal destination for work. In fact, the country is world famous for its very low tax rates. This situation could be justified by the lack of government health care services for foreigners.
In short, foreigners working in Saudi Arabia are exempt from income tax, property tax, VAT, vehicle tax, inheritance or gift tax, license fees, etc., which are quite widespread in many western countries.
However, make sure to inquire on any agreement between Saudi Arabia and your home country stating that you still have to pay tax. In fact, the absence of double taxation agreements between Saudi Arabia and other countries can be quite confusing and cause considerable expenses.
If the value of personal goods and products you are importing into Saudi Arabia for non-commercial purposes exceeds 3,000 Riyals, you will have to pay a tax. You can have more information on these with your freight or travel company.
While income tax is nonexistent in Saudi Arabia, foreign businessmen in the country are liable to some taxes. In fact, a 20% tax rate applies to companies based in the country and is to be paid by the owner or liable shareholder. Moreover, companies involved in the gas and petroleum industries have to pay a tax varying between 35% and 85%.
Good to know:
You are required to settle these tax fees within 10 days following receipt of the company tax return form.