News & Insights/Kingdom of Saudi Arabia Regulatory & Tax Updates (2026)
Regulatory & Tax4 min read
Saudi Arabia

Kingdom of Saudi Arabia Regulatory & Tax Updates (2026)

Saudi Arabia's dual CIT and Zakat framework, mandatory Fatoorah e-invoicing, and generous incentives for regional headquarters and Special Economic Zones make it a compelling — and complex — jurisdiction for foreign investors.

Corporate Tax

A 20% Corporate Income Tax applies to the foreign-owned share of profits, while a 2.5% Zakat is levied on the Saudi and GCC-owned share.

VAT

The standard VAT rate is 15%, with mandatory e-invoicing enforced through the Fatoorah platform.

RHQ Programme

Companies establishing a Regional Headquarters in Saudi Arabia benefit from a 30-year exemption from both CIT and Zakat, making it one of the most attractive HQ incentive programmes in the region.

Special Economic Zones

Businesses operating within designated SEZs enjoy a preferential 5% CIT rate for 20 years, along with customs duty exemptions.