Saudi Arabia unveils the rules for a 30-year tax exemption plan, aiming to attract multinational companies (MNCs) to set up regional hubs in Riyadh. This move aims to attract foreign investment and establish the Kingdom as a regional business hub.
Qualified companies can enjoy:
- Zero income and withholding tax for 30 years
- Simplified visa process for executives’ spouses
- Relaxed Saudization requirements
However, there are conditions:
- Companies must obtain a regional headquarters license.
- Activities must be approved and compliant with tax regulations.
- Minimum asset and operational expense requirements must be met.
- Record-keeping and reporting procedures must be followed.
Benefits may be revoked for non-compliance.
This initiative, alongside the earlier restriction on government contracts for foreign firms without regional HQs in Saudi Arabia, aims to make Riyadh a leading business destination. Several major companies from various sectors have already taken advantage of this offer.
Already working: Over 200 international firms, including Northern Trust, Bechtel, Pepsico, IHG Hotels & Resorts, PwC, and Deloitte, have already taken advantage of this program.
Key takeaway: Saudi Arabia is pulling out all the stops to attract foreign investment by offering significant tax breaks and other benefits to MNCs willing to establish their regional headquarters in Riyadh.
Overall, this initiative makes Saudi Arabia a more attractive destination for MNCs, potentially boosting its economy and establishing it as a key player in the Middle East.
