Saudi Arabia corporate tax rate
Standard corporate income tax (CIT) rate on company profits, administered by the Zakat, Tax and Customs Authority (ZATCA) under the Income Tax Law (Royal Decree No. M/1 of 1425H, 2004). Applies to the share of a company owned by non-Saudi / non-GCC persons; the Saudi/GCC-owned share is instead subject to Zakat, not CIT.
| Current value | 20 percent |
|---|---|
| In force from | 2004-07-30 |
| Official source | ZATCA, Income Tax Law (Royal Decree No. M/1 of 15/1/1425H, 2004), Article 7 — standard corporate income tax rate of 20% on the tax base; scope per ZATCA's Income Tax Law / Implementing Regulations page (applies to resident capital companies in respect of non-Saudi partners' shares, and to non-resident persons with Saudi-source income) |
| Last verified | 2026-07-24 |
| Verification | primary — No verification limitation recorded — read from the official source cited. |
| Provenance | source fingerprint |
What this value means
DUAL-TRACK SYSTEM — the headline is 20% CIT, but which levy a company pays depends on OWNERSHIP. (1) CORPORATE INCOME TAX at 20% (Article 7, Income Tax Law) falls on the portion of a company's taxable income attributable to NON-SAUDI and NON-GCC ownership, and on non-resident persons carrying on business in the Kingdom. (2) ZAKAT at 2.5% (of the Zakat base, broadly net worth/capital employed rather than profit) is levied INSTEAD OF CIT on the portion owned by Saudi and GCC nationals — Zakat is an Islamic religious levy administered by the same authority (ZATCA), not an income tax, so the 2.5% is not comparable to and should not be blended with the 20% rate. A mixed-ownership company splits its base: the non-Saudi/non-GCC share pays 20% CIT, the Saudi/GCC share pays Zakat. EXCEPTIONS TO 20% (not served): oil and hydrocarbon production is taxed at much higher rates (up to 85%, tapering by capital, under Article 7(b)); natural-gas investment has its own regime; approved Regional Headquarters (RHQ) entities get a 0% CIT incentive for 30 years. The 20% standard rate and the dual CIT/Zakat structure have been in place since the current Income Tax Law took effect for fiscal years from 2004 and are unchanged as of the confirmation date. SOURCE ACCESS: ZATCA .aspx pages frequently serve a generic 'not found' shell to plain HTTP clients; the Income Tax Law page confirms the scope wording (non-Saudi partners' shares; non-resident persons), and the 20% Article 7 rate is corroborated in ZATCA's published guidelines (e.g. the RHQ guideline).
Get it programmatically
curl https://mearef.dev/v1/sa/corporate-tax
# $0.001 per call — x402 on Base (USDC). No key, no signup.
# History: curl https://mearef.dev/v1/sa/corporate-tax/history?from=2020-01-01
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