Zakat & Tax

We understand how complex Zakat and Tax matters can be, therefore we help our clients in knowing the relevant applicable laws and their implications. Income Tax @ 20% is payable by foreign (Non GCC) companies.  Organizations understand how important it is to align Tax (VAT) and Zakat strategies with the business needs. We offer a range of Zakat and Tax (VAT) consultancy services, which are designed to assist clients in their Tax matters.

Our team of professionals understand the client’s needs and has extensive experience in the different economic sectors in the Kingdom of Saudi Arabia with a strong professional relationship with the Zakat & Income Tax Authorities.

Value Added Tax (VAT)

Value Added Tax (VAT) will be introduced in the KSA from 1st Jan 2018. It would mean some of the services and products will be taxed at the point of sale. This initiative will benefit the coffers of the country in an indirect tax structure. The rate will start from 5 % and the VAT regime will develop in future overtime. There will be some zero-rated items like exports and exempt items where no VAT will be charged.

Withholding Tax

When paying any expenses from a source in Saudi Arabia by a resident to a non-resident establishment (whether a GCC establishment or a non-GCC establishment), the expenses paid are subject to withholding tax, and its rate is defined by the type of services provided as stipulated in the Law and Regulations.​

The company that deducts the tax and transfers it to GAZT should provide the beneficiary company with a certificate confirming the amount paid and the amount of the tax that has been deducted.