Easily calculate your Saudi Arabia salary after taxes so you know exactly what to expect when creating your budget.
Estimate your salary taxes for the current tax year. Enter your gross income to begin:
Saudi Arabia is a unique jurisdiction when it comes to taxation. Notably absent are taxes on individual income, but the Kingdom has other levies and fees, such as VAT and corporate taxes, that fill governmental coffers.
Income Tax
Individual Income Tax
- Rate: Saudi Arabia imposes a 0% income tax on individual incomes.
- Implications: No income tax can be attractive to professionals and expatriates, but it’s essential to consider other financial obligations that exist.
Corporate Tax
Standard Corporate Tax Rates
- Saudi Companies: Domestic corporations are generally taxed at a rate of 20%.
- Foreign Companies: Non-Saudi companies, especially in the oil and gas sector, may face higher tax rates, sometimes up to 85%.
Sales Tax
Value Added Tax (VAT)
- Rate: The VAT rate was increased to 15% in July 2020.
- Scope: This tax applies to many goods and services, although some essentials like healthcare and education are exempt.
Customs Duties
- Rate: Customs duties range from 5% to 12%.
- Exceptions: Some goods, like tobacco and luxury items, have higher rates.
Special Taxes and Fees
Zakat
- Rate: Saudi nationals and companies pay Zakat, a form of almsgiving, at 2.5% of net worth.
- Scope: Zakat is obligatory for Muslims and is used for social welfare programs.
Expatriate Levy
- Rate: An expatriate levy is imposed on companies employing foreign workers. The cost varies depending on the number of expatriate employees.
- Purpose: This levy aims to encourage businesses to hire Saudi nationals.
