Tax consultation in Saudi Arabia

Saudi Arabia is one of the richest countries in the world due to its huge oil reserves, including being the number one oil exporter in the world. Accordingly, this country is the center of conducting the relevant business.

In addition, Saudi Arabia is actively developing other sectors of the economy, so the taxation system of this country is interesting and in some cases it is necessary to consider it in more detail.

Tax consultation in Saudi Arabia can be very useful for businessmen, foreign investors and individual citizens, including Ukrainians who have changed their place of residence due to the situation in the country.

Thus, we consider it necessary to consider the key aspects related to tax consulting in Saudi Arabia.

Regarding the format of counseling

Specialists of the Law Company “Prikhodko and Partners” can provide consultations on taxes in Saudi Arabia both in person and remotely.

Personal consultations usually include meetings with tax consultants in one of our offices in Ukraine or the European Union. This format allows you to get a personal introduction, answers to specific questions, and review documents directly in real-time.

Remote counseling is also possible, it became especially popular during the decentralization of part of the population of Ukraine around the world and remains in demand due to convenience and time-saving.

Remote counseling includes phone calls, video conferencing, and document exchange via e-mail. This format allows you to seek help from specialists from anywhere in the world.

The tax system of Saudi Arabia

Saudi Arabia has a unique tax system that differs significantly from the system of many other countries, so it is especially necessary to take into account the peculiarities of the latter.

One of the key features is the absence of personal income tax for Saudi citizens and most foreign workers. This makes the country attractive to highly qualified specialists from abroad, who are systematically attracted by the relevant business.

However, there are other types of taxes that apply to both businesses and individuals. The main taxes include corporate tax, value-added tax, and special taxes on certain types of activities.

Basic taxes of Saudi Arabia

1. Corporate tax: The corporate tax rate in Saudi Arabia is 20%. It applies to the net profit of foreign companies operating in the country. It should be noted that Saudi companies and citizens are exempt from this tax.
2. VAT (Value Added Tax): Introduced in 2018, VAT in Saudi Arabia has a rate of 15%. It applies to most goods and services, including imported goods.
3. Decline: This is a religious tax that is 2.5% of the net assets of Muslim entrepreneurs and is used for charity.
4. Capital gains tax: The rate of this tax may vary depending on the type of asset and the period of its holding, so for a more detailed calculation, you should contact our specialists.

A few words about taxes that apply to Ukrainians in Saudi Arabia

Ukrainians working or doing business in Saudi Arabia are subject to the same tax rules as other foreigners in Saudi Arabia.

Since there is no personal income tax in the country, Ukrainian employees may not worry about additional tax obligations on their wages, however, it is better to work out each case separately.

However, they may be liable to pay taxes on business or investment income in Saudi Arabia.

Ukrainian companies planning to do business in Saudi Arabia should pay special attention to corporate tax and VAT.

They should take these taxes into account when planning their financial operations and, if necessary, contact local tax consultants for detailed information and assistance in filling out tax returns, as well as experienced accountants, which can be provided by the Prikhodko and Partners Law Firm.

Conclusion

Tax advice in Saudi Arabia is therefore an important step for any business or foreign national planning to work or invest in the country. Knowledge of basic taxes, the taxation system and available counseling formats will help to avoid misunderstandings and ensure effective financial management.

Ukrainians working in Saudi Arabia can take advantage of the absence of personal income tax, but must be careful about other tax obligations, which our specialists can provide an effective legal opinion.