🇸🇦 Moving to Saudi Arabia

• On: Non-Saudi partners' share of resident company income

Saudi income tax applies to non-Saudi shares in resident capital companies and to non-residents with a permanent establishment or Saudi-source income. Payments to non-residents carry withholding of 5% to 20% by income type. A natural person is resident with a permanent dwelling and 30 days, or 183 days, in the Zakat year.

Taxed on

Non-Saudi partners' share of resident company income; non-residents' Saudi-source income; payments to non-residents (withholding).

Who it applies to

• Natural person resident test: permanent residence in the Kingdom plus at least 30 days in the Zakat year, or, without a permanent residence, at least 183 days in the Zakat year (Zakat Collection Implementing Regulations).

Exclusions

• Opening bank accounts and trading in listed Saudi shares by a resident natural person are not taxable activity.

Days in the country

• At least 30 days in Zakat year · Natural person with a permanent residence in the Kingdom, physically present for at least 30 days, consecutive or aggregated.
• At least 183 days in Zakat year · Natural person without a permanent residence in the Kingdom, physically present for at least 183 days, consecutive or aggregated.

Tax residence

Residence is judged per Zakat year. Withholding rates: management fees 20%, royalties 15%, dividends 5%, rent 5%, loan charges 5%, insurance 5%, technical and consulting services 5%, air tickets or freight 5%, international telecoms 5%, land transport 15%, other payments 15%.

Visas

Premium Residency does not by itself determine tax status.

Checked against official sources on 11 Oct 2026Change log

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Income tax applies to non-Saudi partners' shares in resident capital companies and to non-residents with a permanent establishment or Saudi-source income; resident Saudi and GCC nationals carrying on an activity are subject to Zakat instead.

Taxed on

Income tax: non-Saudi partners' shares of resident capital-company profit and income of non-residents from Saudi sources (by withholding tax or permanent establishment); taxable activity covers commercial, industrial, agricultural, service, banking, insurance, investment, leasing and professional activity.

Who it applies to

• Resident Saudi natural persons and GCC nationals treated alike who engage in an activity are subject to Zakat collection rather than income tax (ZATCA Zakat FAQ).

Exclusions

• Opening bank accounts and trading shares of companies listed on the Saudi Capital Market by a resident natural person are not taxable activity under the Law (ZATCA Income Tax page).
• Withholding tax on payments to non-residents ranges from 5% on dividends, rent, loan charges and insurance to 15% on royalties and 20% on management fees (ZATCA WHT guideline).

Tax residence

A natural person is resident with a permanent residence and 30 days in the Zakat year, or 183 days without a permanent residence.

Checked against official sources on 11 Oct 2026, some details partly verifiedChange log

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