Saudi Arabia announced on Tuesday a 30-year tax incentive package under the Regional Headquarters (RHQ) Program, aimed at facilitating the establishment of multinational companies (MNCs) RHQs in the country.
The 30-year tax relief incentive offers a 0% rate for:
- Withholding tax (WHT) linked to the approved RHQ activities
- Corporate income tax
Companies will enjoy these tax benefits from the day they acquire their RHQ license.
The RHQ Program, a collaboration between the Ministry of Investment of Saudi Arabia (MISA) and the Royal Commission for Riyadh City (RCRC), seeks to attract MNCs to establish their RHQs in Saudi Arabia. It aims to position the kingdom as the premier commercial, industrial, and investment hub for the MENA region. This initiative offers a range of advantages and premium support services, complementing the kingdom’s globally competitive value proposition.
“The tax incentive gives multinational companies operating in the region yet another reason to make Saudi Arabia home to their regional headquarters, on top of other benefits such as relaxed Saudization requirements and work permits for the spouses of RHQ executives,” said Minister of Investment Khalid Al Falih.
Launched initially in 2021, the program has already licensed over 200 companies to operate their RHQs from Saudi Arabia. Additionally, seven international K-12 schools have revealed plans for their new campuses in the kingdom under a dedicated supporting program that targets top-tier international schools worldwide.
“This new incentive gives businesses more visibility and certainty for future planning as MNCs expand their presence in the region through Saudi Arabia while also taking part in our own transformation journey, said Minister of Finance Mohammed Al Jadaan. “We look forward to welcoming more MNCs to participate in projects across all sectors, including our giga-projects and in preparation for hosting such events as the 2029 Asian Winter Games and Expo 2030.”
