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Thursday Nov 28, 2024
Thursday, 7 December 2023 02:36 - - {{hitsCtrl.values.hits}}
Saudi Arabia is offering multinational companies major tax incentives if they set up regional headquarters in the Kingdom.
The Ministry of Investment of Saudi Arabia (MISA), in coordination with the Ministry of Finance and the Zakat, Tax and Customs Authority (ZATCA) announced a 30-year tax incentive package for the Regional Headquarters (RHQ) Program.
The scheme aims to streamline the process for multinational companies (MNCs) to establish regional headquarters in Saudi Arabia.
Saudi offers multinationals major tax benefits.
The RHQ 30-year tax relief incentive includes a zero percent rate for:
Corporate income tax
Withholding tax (‘WHT’) related to the approved RHQ activities
The companies will benefit from the RHQ tax relief from the day they obtained their RHQ license.
The RHQ Program is a joint initiative of MISA and the Royal Commission for Riyadh City (RCRC).
The program aims to attract multinational companies to set up their regional headquarters in Saudi Arabia and position the Kingdom as the leading commercial, industrial and investment hub for the MENA region.
The scheme offers a range of benefits and premium support services that complement the Kingdom’s globally competitive value proposition.
First launched in 2021, the program has now licensed more than 200 companies to operate their regional headquarters from the Kingdom of Saudi Arabia.
Additionally, seven international K-12 schools have announced their new campuses in the Kingdom under a dedicated supporting program targeting best-in-class international schools from around the world.
Minister of Investment Khalid Al-Falih said: “The tax incentive gives multinational companies operating in the region yet another reason to make Saudi Arabia home to their regional headquarters, on top of other benefits such as relaxed Saudization requirements and work permits for the spouses of RHQ executives.
“The Kingdom’s long-term economic stability, young and skilled workforce, strategic location and strong growth prospects have already attracted the world’s leading companies to pick Saudi Arabia as their new regional base of operations, while an even greater number of executives, entrepreneurs and talented professionals from elsewhere in the region and the world are finding the Kingdom a most attractive place to advance their careers.”
Minister of Finance Mohammed Al-Jadaan also commented: “This new incentive gives business more visibility and certainty for future planning as MNCs expand their presence in the region through Saudi Arabia while also taking part in our own transformation journey.
“We look forward to welcoming more MNCs to participate in projects across all sectors, including our mega-projects and in preparation for the hosting of such events as the 2029 Asian Winter Games and Expo 2030.” (Source: https://www.arabianbusiness.com/politics-economics/saudi-arabia-lures-businesses-with-30-year-tax-cut-offer#:~:text=Saudi%20offers%20multinationals%20major%20tax,to%20the%20approved%20RHQ%20activities)
