Saudi plans tax cuts for foreign companies

SAUDI RIYAL: Foreign companies will pay less tax if they employ more locals. (Getty Images)

Foreign companies in Saudi Arabia can pay less investment tax if they employ more nationals, the governor of the General Investment Authority (Sagia) has said.

“The more Saudis you employ the less tax you pay, the more you re-invest the less tax you pay, the more you spend on research and development the less tax you pay.

“Ultimately, foreign investors can reach a point where they will have to pay no tax at all,” the Saudi Gazette reported Amr Al-Dabbagh as saying at a press conference on Sunday.

Al-Dabbagh also said the Ministry of Finance plans to use tax credit as a way to encourage more foreign investors in the country’s less developed regions.

The deduction in tax for foreign companies will be based on the number of Saudis employed and the amount of money spent on research and development, and could be introduced as early as the end of the year, the paper reported.

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