Beautiful Virgin Islands

Friday, May 09, 2025

Multinationals relocating headquarters to Saudi Arabia likely to get tax exemption

Multinationals relocating headquarters to Saudi Arabia 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, wheres 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.

Saudi Arabia does not want to incur additional costs for companies, he said.

Al-Falih pointed out that they have realized that they have to do everything they can through policy and regulation to ensure that companies do not incur additional risks or costs from alternative jurisdictions for managing their regional operations, and the biggest one of course is taxation.

Saudi Arabia is the biggest economy MENA, and also ranks 18th in the ranking of the largest economies in the world.

Thus the regional headquarters scheme, and invest in Saudi initiative comes as part of an ambitious plan to make the Kingdom less dependent on oil revenues by transforming Saudi Arabia into a hub for trade and finance.

Major Saudi companies are set to spend hundreds of billions of dollars on new projects during the upcoming decade, which would attract multinationals to the Kingdom.

About 80 companies, including Unilever and Siemens, have already been granted licenses to move their regional headquarters to Saudi Arabia, the British Financial Times said, adding many of which are expected to be based in Riyadh’s King Abdullah Financial District.

It is worth mentioning that PepsiCo had announced earlier that it had relocated its Middle East chief executive’s office to the Kingdom.

Saudi Arabia, which imposes a 20% corporate income tax, has promised its own incentives, including exemptions on visa limits and recruitment quotas for Saudi nationals for 10 years.
Newsletter

Related Articles

Beautiful Virgin Islands
0:00
0:00
Close
Historic Papal Conclave Set to Commence in Rome
Huge Copper, Gold, and Silver Discovery in Argentina and Chile — But the Profits Go Abroad
Prince Harry is pleading for reconciliation — but the royals are just as sick of his victimhood as everyone else
The Road to Freedom: She Protested Putin, Escaped House Arrest, and Survived a 2,800-Kilometer Journey
OpenAI's Flip-Flop: No Longer Going Commercial, Back to Nonprofit, After Musk Lawsuit and Backlash
“Trump Supporter” Aims to Bring a MAGA-Style Shift to Romania
First From China: Zhao Xintong Wins the Snooker World Championship
Nvidia Faces Billion-Dollar Losses – Warns: China Is on Its Way to Becoming an AI Superpower
Trump Rules Out Third Term, Names JD Vance and Marco Rubio as Potential Successors
Mexico Says ‘No’ to U.S. Troops: President Sheinbaum Rejects Trump’s Offer to Fight Cartels
Nigel Farage’s Reform UK Storms the Map, Wrecking the Two-Party Monopoly
DOGE: Reimagining Government Operations with AI
Common Sense Returns to Britain's Legal System: UK Supreme Court Declares a Woman Is… a Woman
Beijing Says U.S. Is ‘Reaching Out’ for Tariff Talks Amid Soaring Trade Tensions
U.K. Court Rejects Prince Harry’s Final Appeal Over Police Security
Prince Harry’s Heartfelt Outburst Rocks the Royal Family
Trump Shares AI-Generated Image of Himself as… Pope, Prompting Outrage Reaction
Transgender Swimmer Secures Five Gold Medals at U.S. Masters Championship
Prince Harry: “I Want Reconciliation with My Family”
Germany's Alternative für Deutschland (AfD) party has now been officially labeled “right-wing extremist” by the federal office for the so-called “protection of the constitution.”
Amazon Launches Satellite Internet Service Amidst Competition with SpaceX
Transformative Changes in Women's Wrestling: The Rise of WWE Superstars
The Rush to the White Gold: Global Investment Surge in Natural Hydrogen Exploration
This is a day in Spain without electricity and internet
Reform UK Surprises in British Elections, Challenging Traditional Two-Party System
180-Year-Old Christian University in South Carolina Announces Closure Due to Unmet $6 Million Fundraising Goal
Brazilian Woman Jailed for Fourteen Years for Writing “You Lost, Idiot” on Statue During Protest
Trump Administration Removes National Security Adviser Mike Waltz Amid Signal Chat Controversy
Dutch Politician Eva Vlaardingerbroek Receives Spyware Threat Alert from Apple
Paramount Board Considers Settlement in Trump’s $20 Billion Lawsuit Over "60 Minutes" Interview
U.S. Economy Shrink in Trump’s First Quarter as Tariff Policy Raises Questions
Deadline Looms for RTS Meter Replacement: Hundreds of Thousands at Risk of Heating Disruption
Sweden Grapples with Deadly Gun Violence: Suspect Arrested After Three Young Men Killed in Uppsala Hair Salon
Walz Reveals Why Harris Chose Him as Her Running Mate and Reflects on Democratic Losses
Spain Restores Power After Unprecedented Nationwide Blackout
Carney Secures Liberal Mandate in Canada’s Federal Election
Death Penalty Sought as Luigi Manion Pleads Not Guilty in CEO Murder Case
President Trump contacts Jeff Bezos after reports of Amazon considering listing tariff surcharges; company clarifies no such plan for main platform
Spain and Portugal Recover from Massive Blackout
Liverpool Clinches Record-Equalling 20th English League Title Under Arne Slot
Singapore Politicians Warn Against Foreign Interference in Election
Driver Ploughs into Vancouver Festival Crowd, Killing Nine
Depression, Fear of Defamation, and a Tragic End: New Details on Virginia Giuffre’s Suicide
“Sharia for UK, Allah Akbar!”
Massive Explosion at Iran's Bandar Abbas Port Linked to Suspicious Chemical Shipments
Incident Reflection: A Harsh Reality Check
Pakistani migrants to Danish man: “ “We have 5 children while you have 1 or 2. In 10 years, there will be more Pakistanis than Danes here.“
Clashes Erupt in London as Tensions Rise Between Indian and Pakistani Communities
Specialized anti-drone weapons deployed among security personnel Ahead of Papal Funeral
How do you fix this culture?
×