Withholding tax in 2022

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

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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