Withholding Tax in Saudi Arabia: A Comprehensive Guide

Withholding Tax in Saudi Arabia is a crucial aspect of the country’s tax system, ensuring that taxes on certain payments to non-residents are collected at the source. This tax mechanism, enforced by the Zakat, Tax, and Customs Authority (ZATCA), applies to payments made by Saudi businesses to foreign entities that do not have a permanent establishment in the country. Understanding withholding tax in Saudi Arabia is essential for companies operating in the Kingdom to maintain compliance and avoid penalties. This guide explores the concept in detail, including Saudi Arabia withholding tax certificate, Saudi Arabia withholding tax exemption, Saudi Arabia withholding tax on services, Saudi Arabia withholding tax refund, and current withholding tax rates in Saudi Arabia.