Board of Directors Decision of the Zakat, Tax, and Customs Authority No. (9-1-24) dated 23/07/1445 AH
The Board of Directors of the Zakat, Tax, and Customs Authority (the "Board"), based on the powers vested in it under Article (Five) of the Authority's Statute issued by the Council of Ministers Decision No. (570) dated 22/9/1442 AH, and pursuant to Clause (Fifth) of the Council of Ministers Decision No. (338) dated 23/4/1445 AH, which stipulates that the Zakat, Tax, and Customs Authority shall issue - within sixty (60) days from the effective date of this decision - the tax rules for entities licensed to operate the activity of "Regional Headquarters for Global Companies," including all regulations related to tax incentives, provisions on abuse, determination of violations and penalties related to tax incentives, and specifying the list of actual economic substance requirements (Economic Substance Requirements) in coordination with the Ministry of Investment, and the Authority shall verify the fulfillment of these requirements annually, it is hereby decided as follows:
First: Approval of the tax rules for regional headquarters, according to the attached form of this decision.
Second: This decision shall be published in the Official Gazette, effective from the date of its publication, and communicated to all concerned for implementation.
And Allah is the Grantor of success.
Regional Headquarters Tax rules
Show Law Preamble
Chapter One: General Provisions
Article One (1): Definitions
Article (2): Purpose of Tax Rules
1- These Tax Rules are for the purpose of prescribing the provisions related to Tax Incentives available for Regional Headquarters
2- Subject to the conditions and limitations of these Tax Rules, the tax treatments including the Tax Incentives pursuant to these Tax Rules shall only be applicable to the Regional Headquarters.
3- Regional Headquarters may not be exempted or excluded from the Tax and Zakat Laws in the Kingdom except in cases provided for by Tax Incentives by Royal Decree as set forth in these Tax Rules.
Chapter Two: Tax incentives
Article Three (3): Income Tax and Withholding Tax
Article (4): Duration of Tax Incentives
Chapter Three: Economic Substance Requirements
Article Five (5): Economic Substance Requirements
Chapter Four: Tax and Zakat Procedures
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