Saudi Arabia
The Ministry of Investment of Saudi Arabia (MISA), in coordination with the Ministry of Finance and the Zakat, Tax and Customs Authority (ZATCA) today announced 30-year tax incentive package for The Regional Headquarters (RHQ) Program, to further streamline the process for multinational companies (MNCs) to establish their RHQ in Saudi Arabia.
The RHQ 30-year tax relief incentive includes a zero percent [0%] rate for:
– Corporate income tax.
– Withholding tax (‘’WHT’’) related to the approved RHQ activities.
The companies will benefit from the RHQ tax relief from the day they obtained their RHQ license.
The RHQ Program is a joint initiative of MISA and the Royal Commission for Riyadh City (RCRC). The program aims to attract MNCs to set up their RHQ in Saudi Arabia and position the Kingdom as the leading commercial, industrial and investment hub for the MENA region, by offering a range of benefits and premium support services that complement the Kingdom’s globally competitive value proposition.
First launched in 2021, the program has now licensed over 200 companies to operate their RHQ from the Kingdom of Saudi Arabia. Additionally, seven international K-12 schools have announced their new campuses in the Kingdom under a dedicated supporting program targeting best-in-class international schools from around the world.
Minister of Investment Khalid Al-Falih commented: “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 executives.”
“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,” he added.
Minister of Finance Mohammed Al-Jadaan also commented: “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.”
