Saudi Arabia's headline corporate income tax (CIT) rate is 20.
0% - Saudi Arabia does not levy personal income tax on salaries, for either Saudi nationals or expatriates, confirmed via the Zakat, Tax and Customs Authority (ZATCA). Saudi and GCC-national individual shareholders in Saudi businesses are instead subject to Zakat (2.5%) rather than income tax or corporate tax.
The standard VAT/GST (or equivalent consumption tax) rate is 15. Registration thresholds, zero-rated and exempt categories, and reduced rates vary by jurisdiction - see the source link below for the full detail on this jurisdiction.
Saudi Arabia's system is structurally different from most jurisdictions: there is no personal income tax for the vast majority of individuals. Instead, Saudi and GCC-national shareholders pay Zakat (an Islamic levy at 2.5% of a company's Zakat base - broadly net worth), while non-Saudi/non-GCC shareholders in the same resident company pay corporate income tax (20%) on their proportional share of taxable income. A company under Article 3 of the Income Tax Law is a resident if formed under Saudi Companies Law or centrally managed and controlled from Saudi Arabia. A foreign company providing services in Saudi Arabia for more than 183 days in any 12-month period generally creates a taxable Permanent Establishment.
Saudi Arabia has no Controlled Foreign Company regime. A resident capital company's gross income from its foreign operations and branches is, however, subject to Saudi tax under the general worldwide-income principle applicable to the non-Saudi/non-GCC ownership share, subject to relevant conditions and any applicable treaty relief.
Saudi Arabia has no dedicated thin capitalization regime and imposes no fixed debt-to-equity limit - a company may in principle be financed with minimal capital and unlimited debt. Interest deductibility is instead capped by a formula: the lesser of (a) actual interest expense, or (b) interest income plus 50% of taxable income (excluding interest income and expense from that calculation). Interest paid to a foreign head office (as opposed to an affiliate) is not deductible at all, and related-party interest must still satisfy arm's-length pricing requirements under Saudi transfer pricing rules.
Saudi Arabia has entered into 61 double tax treaties/conventions. Saudi Arabia signed the OECD's Multilateral Instrument (MLI) on September 18, 2018, modifying many of these treaties with BEPS-related anti-abuse measures. Treaty relief requires the foreign recipient to obtain and submit a Tax Residency Certificate to the Zakat, Tax and Customs Authority (ZATCA), which maintains the current authoritative treaty list.