Wednesday 21 February 2024

Special 30-year tax package for MNCs setting up base in KSA

RIYADH, December 5, 2023

The Ministry of Investment of Saudi Arabia (MISA), in coordination with the Ministry of Finance and the Zakat, Tax and Customs Authority (ZATCA) today (December 5) announced a 30-year tax incentive package for The Regional Headquarters (RHQ) Programme, to further streamline the process for multinational companies (MNCs) to establish their RHQ in Saudi Arabia.

The RHQ 30-year tax relief incentive, which includes a zero percent rate, enhances an already attractive benefits package for RHQ in the kingdom.

A joint initiative of MISA and the Royal Commission for Riyadh City, the RHQ programme aims to attract MNCs to set up their headquarters 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 KSA’s globally competitive value proposition. 

First launched in 2021, the programme has now licensed over 200 companies to operate their RHQ from the kingdom. Additionally, seven international K-12 schools have announced their new campuses under a dedicated supporting programme targeting best-in-class international schools from around the world.

Announcing the new incentive, Khalid Al-Falih, Minister of Investment of Saudi Arabia, said: "It 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 stated.

Mohammed Al Jadaan, The Minister of Finance, said: "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," he added.

Through a network of representative offices across the world, MISA partners with businesses of all scales and sizes—from startups to blue-chip multinationals—to help make investing in Saudi Arabia as simple as possible. 

MISA also plays a leading role in improving Saudi Arabia’s overall business environment by facilitating investment data across regions and sectors, creating investment incentives, spearheading business reforms and opening up investment opportunities.



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