Income Tax - Saudi Arabia

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Saudi Arabia
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7 Nov 2023 

Saudi Arabia is introducing a personal income tax for the first time, targeting individuals with annual incomes exceeding 100,000 Saudi Riyals.

This initiative, disclosed by the General Authority of Zakat and Tax (GAZT) on November 7, 2023, involves the "Istitala" platform, which is affiliated with the National Competitiveness Center. The proposed Personal Income Tax (PIT) is set at 2.5% for those exceeding the income threshold.

The project seeks to reform the current income tax system, replacing it with a draft that aligns with changes in the Kingdom and international tax best practices, aiming to attract investment and improve transparency. The new system retains the same individuals subject to taxation as the current one. The survey on these changes concludes on December 25, 2023.

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