Sabah
Verifiedشركة الحلول الاربعة للاستشارات المالية والادارية (SAFT)
BookkeepingFinancial Audit
🇸🇦 Jeddah
4 yrs
Corporate Income Tax in Saudi Arabia
Last reviewed:
Saudi corporate income tax applies, in the usual case, to the non-Saudi share of a resident company's taxable income at 20%. Saudi shares of the same company are generally in the Zakat net. Mixed-ownership companies file both. ISZ Global matches you with ZATCA income-tax consultants in Riyadh, Jeddah and Dammam. This is not UAE 9% corporate tax. We do not file the return.
Who pays corporate income tax in Saudi Arabia
Corporate income tax applies, in the usual case, to the share of a resident company's taxable income that is attributable to non-Saudi owners, at 20%. Saudi (and typical GCC) shares of the same company are subject to Zakat instead. A 100% Saudi-owned company therefore files Zakat, not corporate income tax, on that activity. A 100% foreign-owned resident company files corporate income tax. A mixed company files both, split on ownership. Confirm the current treatment for your shareholding against ZATCA's published rules; special regimes exist for oil, hydrocarbons and some investment structures.
This is not UAE corporate tax. The UAE 9% federal corporate tax is a different law, a different portal (the FTA) and a different registration. A consultant who only files UAE CT is not automatically the right appointment for a Riyadh entity.
The return, the books, and the other ZATCA filings
- Register for income tax on ZATCA's portal when the entity is formed or when foreign ownership first appears.
- Keep books from which taxable income can be computed: accounting profit, then ZATCA adjustments.
- File the annual income-tax return with the financial statements that ZATCA asks for.
- Withholding tax on cross-border payments is a separate monthly filing. Transfer-pricing disclosure may apply where you have related-party transactions.
- VAT and e-invoicing are separate again. One firm can hold all of the work, but each return has its own deadline.
What to ask before you appoint
Ask how many mixed-ownership and foreign-owned returns the consultant has filed in the last two years, who signs, and how they will work with your auditor (the tax agent should not be the auditor). Ask for a quote by scope: return only, return plus WHT, or return plus an assessment. Penalty amounts vary; we do not publish them here.
ISZ Global shortlists ZATCA-experienced tax consultants in Riyadh, Jeddah and Dammam. You choose. We do not file the return.
Ownership split, in owner language
Think of one resident company with two kinds of owner. The Saudi (and, in the usual case, GCC) share is in the Zakat net. The other share is in the income-tax net at 20% of taxable income. The company still has one set of books. The consultant splits the result. If you later change the shareholding, the split changes from that date — which is why the Commercial Registration and the ZATCA file must match.
Special regimes (oil, hydrocarbons, some investment licences) can look different. We do not list those rates here because they are not the usual case and they change with the activity. A consultant who has filed that regime should say so before you appoint. A consultant who only files UAE 9% corporate tax should not be your first call for a Riyadh entity.
Riyadh, Jeddah, Dammam — and the UAE sibling
Foreign-owned and mixed groups in Riyadh often need English working papers and a tax agent who can sit with the auditor. Jeddah and Dammam trading companies more often need withholding tax on cross-border services in the same engagement. Tell us the city, the ownership split and whether WHT is already late.
Keep this page for the Saudi income-tax return. UAE 9% federal corporate tax lives on the corporate-tax page. Zakat lives on the Zakat page. Using the wrong page wastes a match request; using one firm for both countries is fine if that firm is licensed in both.
Sources
- Saudi-owned shares of a resident company are generally subject to Zakat. Non-Saudi shares are generally subject to corporate income tax at 20% of taxable income. Mixed-ownership companies apportion the two. Source: ZATCA — Income Tax and Zakat (https://zatca.gov.sa/en/RulesRegulations/Taxes/Pages/default.aspx). Last reviewed 2026-10-28.
- ZATCA rules and taxpayer guidance: https://zatca.gov.sa.
Who needs this service
- Foreign-owned resident companies filing the annual income-tax return
- Mixed-ownership companies that must split Zakat and corporate income tax
- Groups paying withholding tax on cross-border related-party charges
- Owners facing a ZATCA income-tax assessment or a first-year filing
How it works
- 1Tell us the ownership split, year-end and whether WHT or an assessment is in play
- 2Receive 2–3 ZATCA income-tax consultants within 24 hours
- 3You compare scope (return, WHT, objection) and appoint
- 4The firm files under its own licence. ISZ Global does not file
Get matched with a Saudi income-tax consultant
Why ISZ Global?
- 20% CIT on non-Saudi shares
- Separate from UAE 9% corporate tax
- Returns, WHT and assessments
- Free shortlist within 24 hours
Meet Our Consultants
1 matching specialists — free inquiry
Frequently Asked Questions
Does a fully Saudi-owned company pay corporate income tax?
In the usual case, no: that ownership is in the Zakat net. Confirm against ZATCA's rules if you have oil, hydrocarbon or special investment activity.
Is this the same as UAE 9% corporate tax?
No. Different law, different authority (ZATCA, not the FTA), different rate and different return. See our UAE corporate tax page if your question is about a UAE entity.
Do I also need withholding tax help?
If you pay foreign related parties or offshore service providers, often yes. That is a monthly ZATCA filing, separate from the annual income-tax return. Tell us when you request the shortlist.
How are fees quoted?
By scope (return, WHT, assessment). Request a quote. We do not publish amounts.
Does ISZ Global file this return or integrate Fatoora for me?
No. ISZ Global matches you with vetted consultants. The corporate income tax return is done by the firm you appoint, under its own licence.
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