Corporate Tax

Hanz & Partners has been providing valuable support to corporates in managing various aspects of tax and related services that include tax planning, VAT services, tax audits, employee taxation and international taxation. Our expert tax practitioners, auditors, and learned professionals help businesses meet their tax expectations and deadlines promptly. We engage with businesses professionally and make sure that their tax requirements are met with no hassles and promptly. The changing tax landscape requires expertise to optimize tax positions, minimize risks, and ensure compliance. Saudi Arabia has undergone significant tax reforms in recent years, including the introduction of Value Added Tax (VAT) and changes in corporate tax rates. The corporate tax services of Hanz provide valuable support for businesses in this changing environment.

  • The corporate income tax rate is 20% of the net adjusted profits.
  • Corporate Tax is applicable for overseas investors other than GCC nationals.
  • Corporate income tax is payable by non-Saudi/non-GCC shareholders in a Saudi Capital Company and non-residents doing business in Saudi Arabia through Permanent Establishment.
  • Zakat is charged on Saudi & GCC company’s Zakat base at 2.5%. Zakat base represents the entity’s net worth as calculated for Zakat purposes
  • There is no individual income tax scheme in Saudi Arabia. Income tax is not imposed on an individual’s earnings if they are derived only from employment in Saudi Arabia.
  • There are WITHHOLDING TAXES (WHT) applicable in Saudi Arabia. The rates vary between 5%, 15%, and 20% based on the type of service and whether the beneficiary is a related party.
  • The WHT should be paid within the first ten days of the month following the month during which the payment was made. The domestic rate for WHT is 5% on dividends, 5% on interest, and 15% on royalties.

How Hanz helps-

  • Hanz helps corporations comply with tax laws and regulations. We help ensure that businesses adhere to the tax laws and regulations of Saudi Arabia, file accurate tax returns, and meet deadlines.
  • We also help in Corporate Restructuring for appropriate Tax Planning by strategically structuring business operations to minimize tax liabilities while remaining compliant with the law.
  • Our services also assist businesses during tax audits and represent them in disputes with tax authorities.
  • By staying ahead of time and providing prompt reminders and advisory services we ensure that Tax Due Diligence is met by the corporate entities.
  • Transfer Pricing advisory.
  • Domestic & International Group restructuring.
  • Tax services to private and family offices.