Withholding tax in 2023
| Service Provided | Related party | Non-related party | |
|---|---|---|---|
| Nature of payment to non-resident | Offshore & Onshore services | Offshore Services | Onshore Services |
| Management fees | 20% | 20% | 20% |
| Technical & Consultancy Services | 15% | 5% | 5% |
| Royal or license fees | 15% | 15% | 15% |
| Interest and financial charges | 5% | 5% | NA |
| Rent | 5% | NA | 5% |
| Dividends | 5% | 5% | NA |
| Equipment Rental | 5% | 5% | 5% |
| Airline tickets, air or maritime freight | 5% | 5% | 5% |
| International telecommunications services | 15% | NA | 5% |
| Rental of server/satellite space or internet capacity | 15% | 5% | 5% |
| Scientific, industrial or geological surveillance | 15% | 5% | 5% |
| Supervisory services | 15% | 5% | 5% |
| Insurance Brokerage | 5% | 5% | 5% |
| Legal services | 15% | 5% | 5% |
| Accounting consultancy | 15% | 5% | 5% |
| Engineering services | 15% | 5% | 5% |
| Advertisement services | 15% | 5% | 5% |
| Maintenance services | 15% | 5% | 5% |
| Software maintenance | 15% | 5% | 5% |
| Land transport | 15% | NA | 15% |
| Accounting services (excluding consultancy) | 15% | NA | 15% |
| Recruitment services | 15% | NA | 15% |
| Business brokerage | 15% | NA | 15% |
| Subscription in magazines and newspapers | 15% | NA | 15% |
| Study expenses | 15% | NA | 15% |
| Tourism Services (Hotel, care rental, Guide) | 15% | NA | 15% |
| Marketing & sales services | 15% | NA | 15% |
| Storage expenses | 15% | NA | 15% |
| International seminar/conference | 15% | NA | 15% |
| Procurement services | 15% | NA | 15% |
| Catering Services | 15% | NA | 15% |
| Subscription in news reports | 15% | NA | 15% |
| Advertisement publishing (excluding any design work) | 15% | NA | 15% |
** 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
| Country | Dividend | Interest | Royalty | Capital Gains |
|---|---|---|---|---|
| Saudi Arabia (domestic) | 5% | 5% | 15% | 20% |
| China | /5% | /10%(3) | 10% | 20%(5)(6) |
| Ireland | 0%(4) /5% | 0% | 5%/8%(7) | 20%(5)(6) |
| France | 0% | 0% | 0% | 20%(6) |
| Japan | 5%(8)/10%(3) | 10% (3) | 5%/10%(9) | 20%(5)(6) |
| Singapore | 5% | 5% | 8% | 0%(10)/15%(6)(11) |
| Malaysia | 5% | /5% | 8%(12) | 20% |
| Turkey | 5%(13)/10%(3) | 0%(10)/10%(3) | 10% | 20% |
| United Kingdom | 0%/5%/15%(15)(3) | 0% | 5%/8%(7) | 0%(10)/20%(5)(6) |
Notes to the above double tax treaties list
| 1 | When paid by or to the Government |
| 2 | When paid to the Government or the central bank, or on a loan or credit indirectly financed by the government or the central bank |
| 3 | The 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 |
| 4 | Where 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 |
| 5 | If value/property of the company directly/indirectly principally (some treaties contain 50% threshold) consists of immovable property |
| 6 | Gain from shares representing 25% or more share in the company |
| 7 | 5% for right to use industrial, commercial or scientific equipment and 8% in all other cases |
| 8 | If beneficial owner held at least 10% of shares of payer for 183 days ending on the date on which entitlement to dividends is determined |
| 9 | 5% for right to use industrial, commercial or scientific equipment and 10% in all other cases |
| 10 | When paid to government or agency (including financial institution) wholly owned by government |
| 11 | Except for shares of listed companies |
| 12 | Royalty definition includes technical services |
| 13 | Where 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 |
| 14 | When paid to pension fund |
| 15 | When paid by property investment vehicle |
