The principle
When a Saudi-resident entity pays a non-resident from a Saudi source, it withholds a percentage and remits it to ZATCA. The obligation sits with the payer, not the recipient.
Common rates
| Payment type | Rate |
|---|---|
| Management fees | 20% |
| Royalties, and payments to head office or a related party for services | 15% |
| Technical and consulting services, rent, air tickets and freight, international telecoms, dividends, loan returns, insurance premiums | 5% |
Deadlines
- Monthly remittance and return: within the first 10 days of the month following payment.
- An annual return summarising withholding for the year.
- Late payment attracts a penalty for each 30 days of delay.
Double tax treaties
A treaty may reduce or eliminate the rate, but relief requires specific procedures and documents to be in place at the right time.
Reference: laws and regulations published by ZATCA: zatca.gov.sa