Saudi Arabia announces tax incentives to attract the regional headquarters of international companies

The Saudi Ministry of Investment, in coordination with the Ministry of Finance, and the Zakat, Tax and Customs Authority, announced today, Tuesday, December 5, 2023, the provision of a new tax incentives package for a period of 30 years.

The Ministry said that the tax incentives support the program to attract the regional headquarters of international companies, to encourage and facilitate the procedures for international companies to open their regional headquarters in the Kingdom of Saudi Arabia.

Attracting regional headquarters

The Saudi Program to Attract Regional Headquarters for International Companies is a joint initiative between the Ministry of Investment and the Royal Commission for the City of Riyadh, with the aim of attracting international companies to establish their regional headquarters in Saudi Arabia and making the Kingdom the first choice for these companies in the Middle East and North Africa region.

The package includes a tax exemption for regional headquarters for a period of 30 years, a zero percent income tax rate on regional headquarters entities, and a withholding tax for approved activities for regional headquarters. International companies will benefit from the tax exemption package from the date of issuance of the regional headquarters license, according to the Saudi News Agency (SPA).

International companies in the Kingdom

The Saudi Minister of Investment, Khalid bin Abdulaziz Al-Falih, explained that granting tax incentives to the regional headquarters of international companies in the Kingdom is an important incentive to make Saudi Arabia a major center for those headquarters in the region, in addition to other benefits granted such as; Flexible Saudization requirements, attracting executives, and distinguished competencies to work in regional headquarters.

He added that the presence of distinguished competencies and expertise in the Kingdom, in addition to its strategic location and strong growth prospects, contributed to attracting more than 200 companies to the program. In fact, many executives and people with distinguished professional competencies from around the world find the Kingdom an attractive and motivating interface. Supports their advancement in their careers.

On the other hand, Russian President Vladimir Putin intends to discuss aspects of cooperation with the Kingdom of Saudi Arabia in the energy sector, including their partnership in the “OPEC+” alliance, during his upcoming visit to the region, which will also include discussing “large” energy projects between Russian companies and... Emirati “ADNOC”.

Kremlin Foreign Affairs Advisor Yuri Ushakov said that President Vladimir Putin intends to discuss cooperation between Russia and Saudi Arabia in the energy sector, including their participation in OPEC+, in the upcoming talks in the Kingdom, according to what was published by the Russian News Agency, according to what was reported by Bloomberg.

Saudi-Russian coordination is a reliable guarantee for maintaining a stable situation

Ushakov continued: “I would like to say that close Russian-Saudi coordination in this area is a reliable guarantee of maintaining a stable and predictable situation in the global oil market.”

Ushakov revealed that aspects of cooperation in the energy sector are also expected to be discussed during President Putin’s upcoming working visit to the Emirates, tomorrow, Wednesday, as the Russian companies “Lukoil”, “Gazprom”, and “Novatech” are implementing “large” projects with the company. Emirati “ADNOC”, according to what was reported by the Russian News Agency.

The Kremlin Foreign Affairs Advisor explained that the delegation accompanying President Putin includes “representatives of business circles who, so to speak, are directly involved in energy issues... and as we plan, some of them will participate in the negotiations.”