Ashraf AboArafe
The Ministry of Investment, in coordination with the Ministry of Finance, and the Zakat, Tax and Customs Authority, announced today the provision of a new tax incentive package, for a period of 30 years, to support the program to attract the regional headquarters of international companies, in order to encourage and facilitate the procedures for international companies to open their regional headquarters in the Kingdom of Saudi Arabia.
The Saudi program to attract the regional headquarters of international companies is a joint initiative between the Ministry of Investment and the Royal Commission for the City of Riyadh. The program aims to attract international companies to establish their regional headquarters in the Kingdom of Saudi Arabia and make the Kingdom the first choice for these companies in the Middle East and North Africa region, by offering them a set of benefits and distinguished support services.
The tax exemption package for regional headquarters for a period of 30 years includes a zero (0%) percent rate for each of: income tax on regional headquarters entities, and withholding tax for activities approved for regional headquarters, and international companies will benefit from the tax exemption package from the date of issuance of the regional headquarters license.
Commenting on this step, His Excellency the Minister of Investment, Engineer Khalid bin Abdulaziz Al-Falih, explained that granting tax incentives to the regional headquarters of international companies in the Kingdom is an important incentive to make the Kingdom of Saudi Arabia a major center for those regional headquarters in the region, in addition to other benefits. Granted to these companies such as; Flexible Saudization requirements, attracting executives and distinguished competencies to work in regional headquarters.
His Excellency Engineer Khalid Al-Falih stated that the economic stability of the Kingdom, the presence of distinguished competencies and expertise, in addition to its strategic location and strong growth prospects, contributed to attracting more than 200 companies to the program, and many executives and people with distinguished professional competencies from all over the world. They find in the Kingdom, compared to other places in the region and the world, an attractive and stimulating destination that supports their advancement in their professional lives.
For his part, His Excellency the Minister of Finance, Mr. Mohammed bin Abdullah Al-Jadaan, said: “The new tax exemptions granted on regional headquarters activities will give the regional headquarters of international companies in the Kingdom more clarity of vision and stability, which will enhance their capabilities for future planning related to expanding their business.” In the region, starting from the Kingdom, while also participating in the process of development and transformation that we are witnessing in the Kingdom, and we look forward to welcoming more international companies to participate in projects witnessed by all sectors, including mega projects, and our preparations to host major events such as the Games. Asian Winter Festival in 2029 AD, and Expo in 2030 AD.
