Complete 2025 Guide to Saudi Arabia’s Taxes: Rates, Rules & Key Updates

Tax Type	Applicable Rate	Description	Key Updates / Notes
Corporate Income Tax	20% (standard)	Levied on net adjusted profits of non-Saudi/non-GCC entities or their share in mixed-ownership companies.	Higher rates apply to specific sectors: oil and hydrocarbon production (50%–85%) and natural gas investments (separate tax base).
Zakat	2.50%	Religious levy on Saudi and GCC-owned companies, calculated on the Zakat base (capital resources held over 12 months and income not invested in fixed assets).	Amendments to Zakat Implementing Regulations were approved in April 2023, including changes related to employees' housing ownership programs and financial guarantees.
Value-Added Tax (VAT)	15%	Applies to most goods and services, including imports.	Standard rate increased from 5% to 15% effective July 1, 2020. Certain supplies, such as exports and specific medicines, may be zero-rated or exempt.
Excise Tax	50%–100%	Imposed on specific goods deemed harmful to health or the environment, such as tobacco products (100%), energy drinks (100%), and soft drinks (50%).	Introduced in June 2017. Manufacturers and importers of excisable goods are required to register with ZATCA and submit returns bimonthly.
Withholding Tax (WHT)	5%–20%	Applied to payments made by Saudi entities to non-resident entities for various services. Rates vary: dividends (5%), interest (5%), royalties (15%), management fees (20%), technical services (5%).	Recent amendments reduced WHT on technical or consultancy services to 5% from 15%. Payments for airline tickets and certain freight services are now excluded from WHT. WHT must be paid within the first 10 days of each month, with annual returns filed within 120 days after the fiscal year-end.
Real Estate Transaction Tax (RETT)	5%	Levied on the total value of real estate disposals, including land and developed properties. Applies to sales, gifts, inheritance transfers, financial leasing, and long-term usufruct contracts exceeding 50 years.	Introduced in October 2020. Certain transactions, such as compulsory disposals for public benefit and inheritance transfers, are exempt. Saudi nationals may be exempted from RETT on the purchase of their first home up to SAR 1 million, subject to conditions.
White Land Tax (WLT)	2.50%	Annual tax on undeveloped urban land intended for residential or commercial use, calculated based on the land's market value.	Implemented to encourage the development of vacant lands and address housing shortages.
Social Insurance (GOSI)	Saudis: 21.5%; Non-Saudis: 2%	Mandatory monthly contributions based on the employee's basic wage, housing allowance, and commissions, capped at SAR 45,000. For Saudi employees: 9.75% paid by the employee and 11.75% by the employer. For non-Saudi employees: 2% paid by the employer.	No recent changes reported.
Customs Duties	Varies (up to 25%)	Imposed on imports based on tariff rates effective on the payment date. Rates can be as high as 25%, depending on the product. Calculated on the cost, insurance, and freight (CIF) value of the imported goods.	No recent changes reported.

Please note that while this table provides a comprehensive overview, specific circumstances may affect tax obligations. It's advisable to consult with a tax professional or refer to official resources for detailed guidance.