Saudi: Multinationals Relocating Headquarters to Kingdom Likely to Get Tax Exemption
Minister of Investment Khalid Al-Falih has stated that multinationals relocating their regional headquarters to Saudi Arabia this year are more likely to get tax exemption.
Al-Falih made these remarks to the British newspaper Financial Times, where he noted that the multinational companies that will be included in the exemption are those who relocated their regional headquarters to the Kingdom this year with the aim of securing lucrative government contracts.
He said that an announcement will be issued soon to clarify the regulations for the multinational companies.
“Business is going on as usual for us here inside and outside Saudi Arabia” Al-Falih confirmed, while adding that the operations outside Saudi Arabia will be taxed in those entities’ country of operations, and will not be intermingled or mixed with the regional headquarters in the Kingdom.
The Regional Headquarters Program (RHQ) is a joint initiative between the Ministry of Investments and the Royal Commission for Riyadh City, which invites global companies to move their regional headquarters to Saudi Arabia. They will be taxed, only for limited profits, Al-Falih said, adding that, most likely those companies will be granted tax relief.
