Offers a 30-year tax relief package to attract regional corporate headquarters

On 5 December 2023, the Government of Saudi Arabia offered a 30-year tax exemption package for foreign companies establishing their regional headquarters (RHQ) in Saudi Arabia. The incentive is a key part of its campaign to attract multinational enterprises (MNEs) to bring international investment to the Kingdom. The offer includes a zero per cent corporate tax rate and withholding tax for 30 years, which will be applied for companies “from the day they obtained their RHQ licence. The Government announced its RHQ campaign in February 2021 by declaring that any foreign company that did not have its RHQ office in Saudi Arabia by the beginning of 2024 would be barred from doing business with State entities.

• Type:

  • Promotion and facilitation (Investment incentives)

• Industry:

  • Not industry specific

• Sources:

  • Government of Saudi Arabia, 30-Year Tax Relief Added to Incentives for the Saudi Program for Attracting Regional Headquarters of Multinational Companies, https://www.spa.gov.sa/en/N2009098, 05 Dec 2023
  • thenationalnews, Saudi Arabia offers 30-year tax relief for companies moving headquarters to the kingdom, https://www.thenationalnews.com/business/economy/2023/12/06/saudi-arabia-offers-30-year-tax-relief-for-companies-moving-headquarters-to-the-kingdom/, 06 Dec 2023
  • reuters, Saudi Arabia offers tax breaks for companies moving regional HQs to Riyadh, https://www.reuters.com/world/middle-east/saudi-arabia-offers-tax-breaks-companies-moving-regional-hqs-riyadh-2023-12-05/, 05 Dec 2023