The Ministry of Investment of Saudi Arabia (MISA), in coordination with the Ministry of Finance and the Zakat, Tax, and Customs Authority (ZATCA), has announced a tax incentives package for the regional headquarters (RHQ) program geared towards encouraging multinational corporations (MNCs) to base their regional headquarters in Saudi Arabia.
Under the new tax rules, RHQ-licensed companies will enjoy zero percent tax on eligible activities undertaken for the duration of 30 years, subject to renewal. Specifically, the RHQ tax incentive package includes:
- A zero percent corporate income tax rate.
- A zero percent withholding tax rate related to approved RHQ activities.
This tax package comes as over 200 RHQ licenses are awarded to MNCs, including some large multinationals, thereby adding to the list of incentives that MNCs stand to benefit from upon choosing to base their regional headquarters in the Kingdom. The other incentives to consider:
- Saudization exemption: 10-year exemption from Saudization requirements for RHQ employees in all functions.
- Work visa exemptions: No limit on the number of work visas that can be applied by RHQ entities for its employees.
- Provision of RHQ employees’ spouse work visa through Ajeer program.
- Increase RHQ employees’ dependents age to 25 years old.
- Exemption for RHQ employees from professional accreditation requirements, except for medical and engineering accreditation.
- Premium residency for the RHQ’s top executives and their families.
- End-to-end services (business, personal, concierge) provided by MISA.
Contact our KPMG professionals for further details on the program and assistance with the different requirements.
Sadia Nazir Senior Director Tax, Transfer Pricing |
Salam Eido Senior Director Tax and Zakat
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Ghassan El Chaarani Partner Investment Outreach
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Khaled Hannun Senior Director Investment Outreach
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