"The Council of Ministers approved the new income tax law," said Saudi Culture and Information Minister Fouad Al Farsy in remarks quoted by the paper.

The minister said lower tax would be imposed on foreign companies and individuals, excluding citizens of the Arab Gulf Cooperation Council. Companies with capital from non-Saudi shareholder, non-Saudi residents doing business in the kingdom, individuals who do not reside in the kingdom but do business there through permanent firms, are all liable for the lower tax under the new law.