• Home
• /
• Business

Saudi Arabia cuts income tax on foreign investors

DUBAI - Saudi Arabia has approved a new income tax bill which cuts the tax rate on foreign investors from 45 to 20 per cent in a move to attract badly needed foreign capital, the Arab News reported.

"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.