RIYADH — Saudi Arabia announced on Tuesday a new package of tax incentives, including zero percentage of income tax, to multinational companies for a period of 30 years in the event of relocation of their regional headquarters to Riyadh.
The announcement was made by the Ministry of Investment, in coordination with the Ministry of Finance, and the Zakat, Tax and Customs Authority, as part of their bid to encourage and facilitate the procedures for international companies to open their regional headquarters in Saudi Arabia.
The Saudi program to attract the regional headquarters of international companies is a joint initiative between the Ministry of Investment and the Royal Commission for Riyadh City.
The program aims to attract international companies to establish their regional headquarters in Saudi Arabia and make the Kingdom the first choice for these companies in the Middle East and North Africa region, by providing a set of benefits and distinctive support services.
The tax exemption package for regional headquarters for a period of 30 years includes a zero percentage of income tax on regional headquarters entities, and withholding tax for approved activities of regional headquarters of international companies. These companies will benefit from the tax exemption package from the date of issuance of the regional headquarters license, the Saudi News Agency reported.
Minister of Investment Khalid Al-Falih said that granting tax incentives to the regional headquarters of international companies in the Kingdom is an important incentive to make the Kingdom a major center for those regional headquarters in the region, in addition to other benefits granted to these companies such as flexibility in Saudization requirements, attracting executives and distinctive competencies to work at the regional headquarters.
The minister said that the presence of distinctive competencies and expertise in the Kingdom, in addition to its strategic location and strong growth prospects have contributed to attracting more than 200 companies to the program. In fact, many senior executives and people with distinguished professional competencies from all over the world find the Kingdom as the better place to work with compared to other places in the region and the world. The Kingdom is an attractive and motivating destination for them as it supports advancement in their careers too.
On his part, Finance Minister Mohammed Al-Jadaan said that the new tax exemptions granted on regional headquarters activities will give the regional headquarters of international companies in the Kingdom more clarity of vision and stability. This will enhance their capabilities for future planning related to expanding their businesses in the region, after relocating their headquarters to the Kingdom.
These companies can also participate in the process of development and transformation that we are witnessing in the Kingdom, he said. “We look forward to welcoming more international companies to participate in projects taking place in all sectors, including mega projects, at a time of progressing our preparations to host major events such as the Asian Winter Games in 2029 and the World Expo in 2030,” the minister added.
© Copyright 2022 The Saudi Gazette. All Rights Reserved. Provided by SyndiGate Media Inc. (Syndigate.info).
