In a bid to attract multinational companies to establish their regional headquarters in Riyadh, Saudi Arabia has unveiled a comprehensive package of tax incentives. The initiative, announced by the Ministry of Investment, in collaboration with the Ministry of Finance and the Zakat, Tax, and Customs Authority, offers a zero percentage of income tax for a substantial period of 30 years to companies relocating their regional headquarters to the Kingdom.
This move is part of a broader program aimed at positioning Saudi Arabia as the preferred choice for international companies in the Middle East and North Africa region. The program, a joint effort between the Ministry of Investment and the Royal Commission for Riyadh City, provides an array of benefits and support services to encourage companies to establish their regional bases in the country.
The 30-year tax exemption package encompasses a zero percentage of income tax on regional headquarters entities and withholding tax for approved activities of these international companies. Eligible companies will begin benefiting from the tax incentives from the date of issuance of their regional headquarters license, according to the Saudi News Agency.
Khalid Al-Falih, the Minister of Investment, highlighted the significance of granting tax incentives to international companies, emphasizing the Kingdom’s ambition to become a major center for regional headquarters in the area. In addition to tax benefits, the program offers flexibility in Saudization requirements and aims to attract top executives and skilled professionals to work at the regional headquarters.
Al-Falih noted that the Kingdom’s unique competencies, strategic location, and robust growth prospects have already attracted over 200 companies to the program. The Kingdom’s appeal extends beyond tax incentives, with many global executives and professionals recognizing it as a desirable place to work, offering a supportive environment for career advancement.
Finance Minister Mohammed Al-Jadaan emphasized that the new tax exemptions provide clarity and stability to the regional headquarters of international companies, empowering them for future business expansion in the region. He expressed anticipation for more international companies to participate in various sectors and projects, including mega projects. The Kingdom is gearing up to host significant events such as the Asian Winter Games in 2029 and the World Expo in 2030.
