At the recently concluded annual World Economic Forum in Davos, Minister of Finance Mohammed Al-Jadaan told Bloomberg TV that Saudi Arabia has no plans to impose an income tax on individuals.
“There is no intention at all in Saudi Arabia to impose income tax on individuals. That has been our position very clearly.”
He emphasized that the kingdom aims to release some burden on the national economy, enabling a more business-friendly environment.
Earlier this month, the kingdom sold $12 billion worthy of bonds in a three-part issuance that was heavily oversubscribed. This involved the sale of bond tranches of $3.25 billion, $4 billion, and $4.75 billion for six, 10, and 30 years, respectively.
Al-Jadaan said that the amount made from selling the bonds will finance the deficit that reaches 2% of the GDP and help fund ongoing projects in Saudi.
The minister highlighted Saudi Arabia’s diversification efforts into multiple sectors, such as tourism, technology, and logistics. The country is actively working on logistical projects, including railways and airports, to enhance connectivity.
“We have logistics projects such as ports, airports, water treatment plants, and renewables. We need the financing for these projects,” he added.
According to the minister, “efficiency and economic value” are driving factors behind the slowing down of some of the Vision 2030 projects.
“Saudi Arabia is already leveraging various revenue sources, including a value-added tax (VAT), income tax on companies and foreign investors, and zakat on the local population. There are no plans to alter these established mechanisms. Instead, the government aims to streamline economic processes to foster a more business-friendly environment,” Al Jadaan said.
Saudi Arabia launched a program to offer foreign companies establishing their regional headquarters in Riyadh a 30-year corporate income tax exemption.
Now accepting applications for Fast Company Middle East’s Best Workplaces For Women 2023. Click here to register.
Loading the player...
Nadine Mezher reveals secrets to developing a healthy investment outlook