Saudi Arabia: Public consultation on proposed amendments to income tax law

Comments are due 25 October 2023.

Comments are due 25 October 2023.

The Zakat, Tax, and Customs Authority (ZATCA) on 25 September 2023 published proposed amendments to the income tax law for public consultation.

Comments are due 25 October 2023.

The proposed amendments would provide:

  • Payments made to a natural person by an employer under an employment arrangement are not subject to withholding tax.
  • Bonuses paid to board members or those in similar positions are considered wages.
  • Payments made to nonresident entities classified as “transparent entities” are not subject to withholding tax to the extent of the share attributed to a resident of Saudi Arabia.
  • The tax treatment of research and development (R&D) expenses are referred to the income tax implementing regulations.
  • New withholding tax rates and categories.


For more information, contact a KPMG tax professional:

Philippe Stephanny |



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