Saudi Arabia Unveils 30-Year Tax Exemption to Attract Foreign Corporate Headquarters 🇸🇦

Saudi Arabia has announced a bold move to entice foreign companies to establish their regional headquarters in the kingdom by offering a lucrative 30-year exemption for corporate income tax. This initiative, part of Crown Prince Mohammed bin Salman’s broader economic diversification plan, aims to reduce the nation’s reliance on oil revenue and create new industries for job generation. The tax incentive package includes a zero percent income tax rate for the regional entity and a withholding tax exemption on approved activities for three decades, making Saudi Arabia a compelling destination for international businesses. As part of the strategy announced in February 2021, the kingdom plans to cease awarding government contracts to companies lacking regional headquarters in Saudi Arabia by January 1, 2024. The program has already attracted 200 foreign companies, reflecting positive industry response and positioning Saudi Arabia as a key player in the regional business landscape.