Saudi Offers 30 Year Tax Breaks for Companies Moving HQs to Riyadh
Companies who make a request to move their HQs to Riyadh by January 1st will be exempted from income taxes for 30 years.
Saudi Arabia has announced a series of tax incentives aimed at attracting foreign companies to establish their regional headquarters in the kingdom. The incentives include a 30-year exemption from corporate income tax, providing an appealing proposition for international businesses.
The move comes as part of Saudi Arabia's efforts to diversify its economy away from oil dependency and create new industries that generate employment opportunities for its citizens. Crown Prince Mohammed bin Salman has set a target of ending government contracts to companies without regional headquarters in the kingdom by January 1, 2024.
"We look forward to welcoming more international companies to participate in projects in all sectors, including mega projects, and our preparations to host major events such as the Asian Winter Games in 2029, and the Expo 2030," stated Saudi Finance Minister, Mohammed Al-Jadaan.
Under the tax exemption package, regional headquarters will enjoy a zero percent income tax rate and withholding tax on approved activities for a period of 30 years. The benefits will be applicable from the date of issuance of the companies' licenses. Saudi Arabia's State News Agency, SPA, reported that around 200 foreign companies have already been attracted to the program.
