Pay 
Language 
Currency 
No results found
Taxes in Saudi Arabia: Which should I pay?
Find in this guide the list of taxes to be paid in Saudi Arabia for 2025, including rates for individuals and businesses.
Learn about the tax obligations that both locals and foreigners must comply with in this Middle Eastern country. For example, some of the taxes in Saudi Arabia include VAT and social security contributions. If you’re looking for the exact rates, we’ve got them here.
This country, known for its desert regions, being one of the main oil exporters, and having a large percentage of foreign workers (80%), has a distinctive tax system, combining traditional religious obligations with modern fiscal policies.
Taxes for Individuals in Saudi Arabia
Saudi Arabia offers a favourable tax environment for individuals, with the absence of personal income tax and a clear social contribution system. However, it is essential to be informed about other tax obligations, such as VAT and Zakat, to ensure compliance with the regulations and proper financial planning.
Is there a personal income tax in Saudi Arabia?
As mentioned, Saudi Arabia does not apply personal income tax, neither for citizens nor foreigners. This means salaries and other work-related compensations are exempt from taxation.
Social Security Contributions (GOSI)
Although there is no income tax, employees must contribute to the social security system, managed by the General Organisation for Social Insurance (GOSI):
- Saudi employees:
- Employer’s contribution: 12% of the monthly salary.
- Employee’s contribution: 10% of the monthly salary.
- Total: 22% of the monthly salary.
- Non-Saudi employees:
- Employer’s contribution: 2% of the monthly salary, allocated to work-related insurance.
- Employees do not make contributions.
These contributions are calculated on a maximum salary of $12,000 (€11,100) per month.
Value Added Tax (VAT)
Since 1 July 2020, Saudi Arabia has applied a 15% VAT on most goods and services. Some categories are exempt or subject to a zero rate, such as certain financial services and exports.
Religious Obligation: Zakat
Zakat is a religious obligation for Saudi Muslims and citizens of the Gulf Cooperation Council (GCC). It is an annual contribution of 2.5% on certain assets, as part of an individual’s net wealth.
Real Estate Transaction Tax (RETT)
Property transfers are subject to a 5% tax on the transaction value. This tax applies to sales of land, buildings, and residential units, with some specific exceptions.
Taxes for Companies or Legal Entities in Saudi Arabia
The tax environment in Saudi Arabia for companies distinguishes between Saudi-owned companies and those with foreign ownership. Below, we outline the main taxes that companies must consider in 2025:
Corporate Income Tax
- Standard rate: 20% on adjusted net profits.
- Application: Mainly to companies with foreign participation or ownership by non-GCC citizens.
- Exceptions:
- Oil and hydrocarbon production: Rates between 50% and 85%.
- Investments in natural gas: Subject to an independent tax base.
Example: A company with adjusted net profits of $266,600 (€247,000) would pay $53,300 (€49,400) in corporate tax.
Zakat for Companies
- Rate: 2.5% on the Zakat base.
- Application: Companies owned by Saudis or GCC countries.
- Zakat base: Includes capital, reserves, retained earnings, and other non-invested assets in fixed assets.
Example: A company with a Zakat base of $533,000 (€494,000) would pay $13,300 (€12,300).
Withholding Tax (WHT)
- Application: Payments to non-resident entities for specific services.
- Rates:
- Management fees: 20%
- Royalties: 15%
- Rentals: 5%
- Dividends: 5%
- Land transport: 15%
- Other services: 15%
Example: A payment of $26,600 (€24,600) for royalties to a foreign entity would involve a WHT of $4,000 (€3,700).
Value Added Tax (VAT)
- Standard rate: 15 %.
- Application: Goods and services, with some specific exemptions.
Example: A sale of $2,660 (€2,470) would be subject to $400 (€370) VAT.
Real Estate Transaction Tax (RETT)
- Rate: 5% of the transaction value.
- Application: Property transfers, with certain exemptions.
Example: The sale of a property for $133,000 (€123,000) would generate a RETT of $6,600 (€6,100).
Social Security Contributions (GOSI)
- Saudi employees:
- Employer: 12% of the monthly salary.
- Employee: 10% of the monthly salary.
- Non-Saudi employees:
- Employer: 2% of the monthly salary.
- Employee: Not available
Example: For a Saudi employee with a salary of $2,660 (€2,470), the employer would contribute $320 (€300) and the employee $266 (€250).
How to Pay Taxes Online in Saudi Arabia?
The General Authority of Zakat, Tax, and Customs (ZATCA) makes tax compliance easier through its online platform.
Steps for online payment:
- Registration: Visit the ZATCA portal and create a business account.
- Declaration: Complete and submit the relevant tax returns.
- Payment: Use the SADAD system to make electronic payments through local banks.
The SADAD system allows payments 24/7 through various banking channels.
Stay Connected in Saudi Arabia
If you travel frequently and want to stay connected without worrying about roaming charges, Holafly’s monthly plans offer global internet plans that work in Saudi Arabia and over 160 countries. Plus, you can share unlimited data across multiple devices, ideal for studying or remote work.
Important: If you are a frequent traveler and want to stay connected without worrying about expensive roaming or looking for a new SIM at every destination, Holafly’s subscription plans are for you. With a single eSIM, enjoy internet in more than 160 countries for a fixed price and no surprises on your bill. Travel without limits and connect easily and securely! 🚀🌍
For short stays, the eSIM for Saudi Arabia from Holafly provides unlimited data for the days you need.
Tax Benefits in Saudi Arabia
Saudi Arabia has implemented a series of tax incentives to attract foreign investment, encourage business creation, and promote the residency of skilled professionals. Here are some of the main tax benefits available in 2025:
Tax Exemption for Regional Headquarters (RHQ)
Companies that establish their regional headquarters in Saudi Arabia can benefit from a tax incentive package, including:
- 100% exemption from corporate income tax and withholding tax for 30 years.
- Exclusive access to government contracts.
- Right to issue unlimited work visas.
- Exemption from Saudization requirements.
- Preferential access to the Public Investment Fund (PIF).
This program is part of Saudi Arabia’s strategy to become a regional financial hub and attract multinationals such as Goldman Sachs and Franklin Templeton.
Incentives in Special Economic Zones (SEZ)
Companies operating in special economic zones can access:
- 5% corporate income tax rate for up to 20 years.
- 100% exemption from withholding tax on profit repatriation.
- Exemption from customs duties on capital equipment.
These zones are designed to foster investment in strategic sectors and less-developed regions.
Tax Deductions for Saudi Employment and Training
Companies can access additional tax deductions if:
- Invest more than $266,000 (€247,000) in a project..
- Employ more than five Saudi nationals in technical or administrative roles with contracts lasting at least one year.
The deductions include:
- 50% of annual spending on Saudi training.
- 50% of the annual salaries paid to Saudi employees.
- 15% of non-Saudi capital participation, subject to certain conditions.
2025 Tax Amnesty Program
Until 30 June 2025, the General Authority of Zakat, Tax, and Customs (ZATCA) has extended an amnesty initiative that exempts fines and penalties related to:
- Late registration under all tax laws.
- Delays in payments and tax return submissions.
- Violations of electronic invoicing and VAT return adjustments.
This measure aims to ease the financial burden on businesses and encourage voluntary compliance.
Premium Residency for Foreigners
The Premium Residency program allows foreigners to live, work, and own property in Saudi Arabia without needing a local sponsor. There are two options:
- Permanent residency: $213,000 (€198,000).
- Renewable annual residency: $26,660 (€24,800).
This program is designed to attract skilled professionals and foreign investors.
Frequently Asked Questions about Taxes in Saudi Arabia
No. Saudi Arabia does not impose personal income tax, meaning income derived from employment is exempt from taxation.
Zakat is a mandatory 2.5% contribution on certain assets, applicable to Saudi citizens and GCC nationals. Saudi or GCC-owned companies are subject to this tax.
Yes. Companies with foreign participation are subject to a 20% corporate income tax on adjusted net profits.
Withholding tax applies to payments made to non-resident entities for specific services, such as royalties, rentals, and management fees. Rates range from 5% to 20%, depending on the type of service.
Yes. Saudi Arabia offers various incentives such as tax exemptions in special economic zones, deductions for employing Saudi nationals, and tax amnesty programs to encourage investment and tax compliance.
Taxes can be paid online through the General Authority of Zakat, Tax, and Customs (ZATCA) portal. The SADAD system allows for electronic payments through local banks, making tax compliance easier.
