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Saudi Arabia: Consultation on economic substance regulations for special economic zones

Consultation closes March 3, 2026

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february 23, 2026

The Zakat, Tax, and Customs Authority (ZATCA) on February 16, 2026, published for consultation draft regulations providing the economic substance requirements regulations applicable to the four special economic zones (SEZs) of King Abdullah Economic City (KAEC), Ras Al-Khair (RAK), Jazan, and Cloud Computing.

The special economic zones offer tax benefits including exemptions from withholding tax and Zakat, customs duty suspensions, and a 0% value added tax (VAT) rate under specific conditions.

The consultation closes March 3, 2026.

Read a February 2026 report prepared by the KPMG member firm in Saudi Arabia

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