Saudi Arabia announced on Tuesday it would grant a 30-year tax relief break to multinational companies establishing their regional headquarters (RHQ) in its capital city Riyadh.
The Ministry of Investment’s announcement comes less than one month before the January 1 deadline for multinationals to open their regional headquarters in Saudi Arabia or lose out on government contracts.
The tax-relief package includes a zero-percent rate for corporate income tax and withholding tax, the ministry said in a statement.
It also includes the ability to apply for unlimited work visas and a 10-year waiver on quotas for hiring Saudi nationals.
The tax incentive gives multinational companies operating in the region yet another reason to make Saudi Arabia home to their regional headquarters, on top of other benefits such as relaxed Saudization requirements and work permits for the spouses of RHQ (Regional Headquarters) executives,” the official Saudi Press Agency (SPA) quoted Minister of Investment Khalid Al-Falih as saying.