The Saudi Arabian government will offer any company that relocates to Riyadh a 30-year tax exemption package, part of a recent push to attract foreign investment and diversify the kingdom’s oil-dominated economy. Crown Prince Mohammed bin Salman has worked to position Saudi Arabia as an alternative to the United Arab Emirates as a regional hub for finance, industry, and trade, and in 2021, the government announced it would stop awarding contracts to companies that did not relocate their regional headquarters to the country by 2024. State-controlled media reported that the tax break package would include a zero percent income tax on the entity itself and a zero percent withholding tax rate for all approved activities conducted by the entities. The new tax structure is designed to go into effect as soon as the company’s business license is issued. Saudi Finance Minister Mohammed Al-Jadaan said the tax incentives will provide newly arrived multinational corporations in the kingdom “more clarity of vision and stability.” The announcement of the new policy comes just over a week after Saudi Arabia won its bid to host Expo 2030. Saudi Arabia is looking forward to welcoming more international companies to participate in projects across all sectors and is preparing to host major events such as the Asian Winter Games in 2029 and the Expo 2030. Foreign companies operating on government contracts in the Kingdom have been rushing to get licensed before the December 1, 2024, deadline to meet the relocation requirement.
Saudi Arabia Introduces Tax Incentives for Companies Relocating Regional Headquarters to the Country
