Saudi Arabia Corporate income tax rate
Saudi Arabia Corporate income tax rate is 20 percent, in force since 30 Jul 2004, cited to ZATCA, Income Tax Law (Royal Decree No. M/1 of 15/1/1425H, 2004), Article 7. Last checked against the official source on 24 Jul 2026.
Official source: ZATCA, Income Tax Law (Royal Decree No. M/1 of 15/1/1425H, 2004), Article 7 · Last checked 2026-07-24 · source fingerprint
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://asiaref.dev/v1/sa/corporate-tax
# $0.005 per call — x402 on Base (USDC). No key, no signup.
# History: curl https://asiaref.dev/v1/sa/corporate-tax/history?from=2020-01-01
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Other Saudi Arabia series: SAMA Repo Rate · Value Added Tax (standard rate) · VAT registration threshold · Minimum wage for Saudi nationals (Saudization / Nitaqat) · Public holidays · Consumer Price Index inflation (year-on-year) · Withholding tax rates · Statutory default interest · Personal income tax · Statutory social-insurance contributions · Tax filing deadlines
The same figure elsewhere: Singapore · South Korea · Sri Lanka · Taiwan · Thailand · all 28