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Thinking of moving your company’s HQ to KSA? This might be the nudge you need
Saudi Arabia reveals tax relief for multinationals moving headquarters to the Kingdom.
If you’re considering moving your company’s headquarters to Saudi Arabia, here’s another reason it could be worth the move.
Multinational companies relocating headquarters to Saudi Arabia in 2023 to secure government contracts are more likely to get tax exemptions, says Khalid Al-Falih, Minister of Investments.
Al-Falih commented in a conversation with Financial Times, where he noted that an announcement would soon be issued to clarify the regulations for the multinational companies. Companies outside KSA will still be taxed in the entities’ country of operations and will not be intermingled or mixed with the regional headquarters in the Kingdom.
The move further incentivizes entrepreneurs to set up shop in Saudi Arabia. It’s part of the Regional Headquarters Program (RHQ), launched in 2021, to invite global companies to relocate their regional headquarters to Saudi Arabia.
According to Al-Falih, these multinational companies that move their headquarters to KSA will be taxed only for limited profits, and most likely, those companies will be granted tax relief. The minister noted Saudi Arabia wants to avoid incurring additional costs for companies, and the biggest one is taxation.
About 80 companies, including Unilever and Siemens, have been granted licenses to relocate their regional headquarters to Saudi Arabia.
By boosting an ideal business environment, along with initiatives such as The RHQ and Invest in Saudi, the country hopes to diversify economic growth and create more job opportunities.