Riyadh - Sharikat Mubasher: The Saudi Ministry of Investment (MISA) added a 30-year tax relief incentive package to the Regional Headquarters (RHQ) Program, in coordination with the Ministry of Finance and Zakat, Tax, and Customs Authority (ZATCA).
In a statement, MISA said that this decision will streamline the process for multinational companies establishing their RHQ in Saudi Arabia.
The RHQ program, which will enter into effect in January 2024, aims to attract multinational corporations to establish their RHQ in Saudi Arabia, in alignment with the Kingdom’s goal to become a leading commercial, industrial, and investment hub in the MENA region.
The 30-year tax relief incentive package includes a 0% rate for corporate income tax (CIT), withholding tax (WHT) on dividend payments from RHQ to its foreign parent entity, WHT for payments to related parties, and WHT for services payments to non-resident unrelated parties necessary to carry out RHQ activities as defined in the tax rules.
The companies will benefit from the RHQ tax relief as soon as they obtain their RHQ licenses.
Since its launch in 2021, the RHQ Program has licensed more than 200 companies to operate their RHQ from the Kingdom, including Schnider, SYSTRA, IHG Group, Wilo, and Essar Group.
