Khalid al-Falih, the investment minister, announced that multinational companies that move their regional headquarters to Saudi Arabia this year will likely receive tax breaks.
Al-Falih said in a statement to Britain’s Financial Times that multinational companies are exempt from taxes on the condition that they relocate their regional headquarters to the Kingdom this year in order to secure lucrative government contracts.
The Investment Minister added: “These companies will only be taxed on limited profits,” stressing that “these companies are likely to be given tax credits.”
He stated that “an announcement explaining the rules for multinational companies will be published shortly.”
“For us here in Saudi Arabia and beyond, this is business as usual,” he continued.
And he pointed out that “operations outside the Kingdom of Saudi Arabia will be taxed in the country of operation of these entities and will not mix or mingle with the regional headquarters in the Kingdom of Saudi Arabia.”
The move is part of the Regional Headquarters (RHQ) Programme, a joint initiative between the Ministry of Investment and the Riyadh City Royal Commission calling on international companies to relocate their regional headquarters to the Kingdom.
