Saudi Arabia announced on Tuesday it would grant a 30-year tax relief break to multinational companies establishing their regional headquarters (RHQ) in its capital city Riyadh.
The Ministry of Investment’s announcement comes less than one month before the January 1 deadline for multinationals to open their regional headquarters in Saudi Arabia or lose out on government contracts.
The tax-relief package includes a zero-percent rate for corporate income tax and withholding tax, the ministry said in a statement.
It also includes the ability to apply for unlimited work visas and a 10-year waiver on quotas for hiring Saudi nationals.
“The tax incentive gives multinational companies operating in the region yet another reason to make Saudi Arabia home to their regional headquarters, on top of other benefits such as relaxed Saudization requirements and work permits for the spouses of RHQ (Regional Headquarters) executives,” the official Saudi Press Agency (SPA) quoted Minister of Investment Khalid Al-Falih as saying.
Announced in February 2021, the RHQ Program aims to attract multinational companies to set up their headquarters in Saudi Arabia and position the Kingdom as the leading commercial, industrial and investment hub for the MENA region, offering a range of benefits and premium support services.
The program has so far licensed over 200 companies to operate their RHQ from the Kingdom of Saudi Arabia, according to SPA.
“The Kingdom’s long-term economic stability, young and skilled workforce, strategic location and strong growth prospects have already attracted the world’s leading companies to pick Saudi Arabia as their new regional base of operations, while an even greater number of executives, entrepreneurs & talented professionals from elsewhere in the region and the world are finding the Kingdom a most attractive place to advance their careers,” the minister added.
For his part, Minister of Finance Mohammed Al-Jadaan said: “This new incentive gives business more visibility and certainty for future planning as MNCs expand their presence in the region through Saudi Arabia while also taking part in our own transformation journey.”
“We look forward to welcoming more MNCs to participate in projects across all sectors, including our giga-projects and in preparation for the hosting of such events as the 2029 Asian Winter Games and Expo 2030.”
source: english.alarabiya.net
