The Impact Of Saudi Arabia’s 30-Year Tax Relief Plan On National And Regional Development
If a lesson was ever learned about the UAE’s demonstrable success, then Saudi Arabia’s announcement of a 30-year tax exemption package for foreign companies establishing their regional headquarters in the Kingdom would be it. Declared in a statement released through the Saudi state press agency, “The Ministry of Investment of Saudi Arabia, in coordination with the Ministry of Finance and the Zakat, Tax and Customs Authority today announced a 30-year tax incentive package for The Regional Headquarters (RHQ) Program, to further streamline the process for multinational companies (MNCs) to establish their RHQ in Saudi Arabia”.
Falling under the announcement, headquartered MNCs won’t just benefit from a zero per cent rate for corporate income tax, but a further zero per cent for withholding tax related to approved RHQ activities.
While it is impossible to predict future domestic, regional, or international policy, Saudi’s decision for a 30-year tax exemption not only follows the UAE’s proven recipe for success at a strategic point in its evolution, but will ultimately be a long-term win for the GCC as an increasingly influential region in global economics, politics, and culture.