Middle East

Saudi Arabia: tax at a glance

There is no personal income tax, but a 20% corporate tax applies to foreign-owned profit, along with a 2.5% Zakat on nationals and a 15% VAT.

No personal income tax Last verified July 2026

The taxes

Personal income (top)
0%
Corporate income
20%
Capital gains
Exempt for individuals. There is no personal capital gains tax.
VAT
15%
Dividends (WHT)
5%
Interest (WHT)
5%
Royalties (WHT)
15%
Social security (employee)
9.75% for Saudis; 0% for expats.
Social security (employer)
11.75% for Saudis; 2% for expats, covering occupational hazard only.
Wealth tax
None. Zakat of 2.5% applies to nationals' Zakat base.
Inheritance / estate
None. Sharia law governs estate distribution.
Property tax
There is no annual property tax. A 5% Real Estate Transaction Tax applies on transfers, and a White Land Tax applies to vacant urban land.
Other
Zakat of 2.5% applies to the Saudi/GCC-owned share; oil and gas profits are taxed at 50–85%.

How the system works

Tax system
No personal income tax
Taxes by citizenship
No
Exit tax
No
CFC rules
No
CRS
Participating
Special regime
The Regional Headquarters program offers a 30-year 0% rate on corporate income tax and withholding tax.

The rates below are indicative headline figures (top marginal, standard, and headline rates), reviewed 2026-07. Brackets, surcharges, and state, provincial or cantonal taxes vary. Treat this as a reference map, not advice.

Sources (1)

Frequently asked

What is the income tax rate in Saudi Arabia?

The top marginal personal income tax rate in Saudi Arabia is 0%. There is no personal income tax on individuals. Saudi and GCC nationals pay 2.5% Zakat instead of tax on business.

What is the corporate tax rate in Saudi Arabia?

The headline corporate income tax rate is 20%.

Does Saudi Arabia tax capital gains?

Capital gains for individuals: Exempt for individuals. There is no personal capital gains tax..