Conditional 10-year tax incentives are being offered by the Kingdom of Saudi Arabia (KSA).
FOR IMMEDIATE RELEASE / PRURGENT
(Sunnyvale, CA)- Conditional 10-year tax incentives are being offered by the Kingdom of Saudi Arabia (KSA). It has announced such incentives in six less-developed regions of the country - Hai'l, Northern Borders, Jazan, Najran, Al Baha and Al Jouf to invite Foreign Direct Investment (FDI).
This new move is expected to encourage more foreign companies to do business in Saudi Arabia and increase skills of the national workforce. Foreign companies looking to expand overseas can avail this investment opportunity and can expect reduced corporate tax and overall business expenses.
Tax Incentives for Doing Business in Saudi Arabia
Foreign companies can avail an "Employment Incentive" - payable in lieu of the costs incurred on Saudi employees for 10 years, as mentioned below:
*Deduction of half of the yearly cost of expenses incurred on training of Saudi employees.
*Deduction of half of the yearly salaries paid to Saudi employees, if there is any balance of tax payable after applying above provision.
The foreign investor will be eligible for "Capital Incentive" which is 15% of the paid up (investment) capital of industrial projects for a period of 10 years either in cash or in kind as well as on any capital increase.
Eligibility Criteria for the Saudi Arabia tax incentive:
* Project must be established in any area of six regions - Hai'l, Northern Borders, Jazan, Najran, Al Baha and Al Jouf.
*The license should be obtained for the project from Saudi Arabian General Investment Authority.
*Minimum paid up capital for the project - SR 1 million in cash or in kind.
*Certified Saudi auditor to regularly audit accounts maintained of the project.
*If the concerned project is a branch/corporation of an organization based in another region, the concerned project shall have independent capital; maintain separate independent accounts audited by project auditor and file separate tax return.
*The tax benefits would not be even given to dependent projects operational in other states except in the six regions mentioned.
*Any project established in the mentioned regions before or after the order was issued by Council of Ministers can also avail these tax incentives.
*Tax concessions as decided would apply from the year in which the project starts to enjoy tax Incentives up to 10 taxable years commencing and ending on or after date of issuance of the order.
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