Withholding tax in 2023

Service ProvidedRelated partyNon-related party
Nature of payment to non-residentOffshore & Onshore servicesOffshore ServicesOnshore Services
Management fees20%20%20%
Technical & Consultancy Services15%5%5%
Royal or license fees15%15%15%
Interest and financial charges5%5%NA
Equipment Rental5%5%5%
Airline tickets, air or maritime freight5%5%5%
International telecommunications services15%NA5%
Rental of server/satellite space or internet capacity15%5%5%
Scientific, industrial or geological surveillance15%5%5%
Supervisory services15%5%5%
Insurance Brokerage5%5%5%
Legal services15%5%5%
Accounting consultancy15%5%5%
Engineering services15%5%5%
Advertisement services15%5%5%
Maintenance services15%5%5%
Software maintenance15%5%5%
Land transport15%NA15%
Accounting services (excluding consultancy)15%NA15%
Recruitment services15%NA15%
Business brokerage15%NA15%
Subscription in magazines and newspapers15%NA15%
Study expenses15%NA15%
Tourism Services (Hotel, care rental, Guide)15%NA15%
Marketing & sales services15%NA15%
Storage expenses15%NA15%
International seminar/conference15%NA15%
Procurement services15%NA15%
Catering Services15%NA15%
Subscription in news reports15%NA15%
Advertisement publishing (excluding any design work)15%NA15%

** Please note:
– These rates are based on the Saudi Tax Law.
– Effective WHT on gross receipt for technical and consulting services is 4.8% or 6%.??

Key Countries apart of KSA double tax treaty network

CountryDividendInterestRoyaltyCapital Gains
Saudi Arabia (domestic)5%5%15%20%
Ireland0%(4) /5%0%5%/8%(7)20%(5)(6)
Japan5%(8)/10%(3)10% (3)5%/10%(9)20%(5)(6)
United Kingdom0%/5%/15%(15)(3)0%5%/8%(7)0%(10)/20%(5)(6)

Notes to the above double tax treaties list

1When paid by or to the Government
2When paid to the Government or the central bank, or on a loan or credit indirectly financed by the government or the central bank
3The treaty rate is higher than domestic rate; under established practice in KSA lower of treaty or domestic rate applies; however, taxpayer is advised to monitor changes in legislation and in application practices to verify the practice at the time of use
4Where the payee is a company (excluding partnership) holding directly at least 25% of the paying company's capital, or when paid to the government or the central bank
5If value/property of the company directly/indirectly principally (some treaties contain 50% threshold) consists of immovable property
6Gain from shares representing 25% or more share in the company
75% for right to use industrial, commercial or scientific equipment and 8% in all other cases
8If beneficial owner held at least 10% of shares of payer for 183 days ending on the date on which entitlement to dividends is determined
95% for right to use industrial, commercial or scientific equipment and 10% in all other cases
10When paid to government or agency (including financial institution) wholly owned by government
11Except for shares of listed companies
12Royalty definition includes technical services
13Where beneficial owner is a company (excluding partnership) holding directly at least 20% of the paying company's capital, or when paid to the government or the central bank
14When paid to pension fund
15When paid by property investment vehicle

Contact us

For additional information on our business registration services in Saudi Arabia, please contact our in-house country expert, Ms. Chrissi Zamora, directly:
client relationship officer - Chrissi
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