Riyadh, Saudi Arabia – The Saudi Ministry of Investment (MISA), in coordination with the Ministry of Finance and ZATCA, has officially announced the tax incentive package for the Regional Headquarters (RHQ) Program. This historic move confirms a 30-year tax exemption for multinational corporations (MNCs) that establish their regional HQs in the Kingdom.
Key Incentives at a Glance
- 0% Corporate Income Tax for 30 years on eligible RHQ activities.
- 0% Withholding Tax for 30 years on dividends paid by the RHQ to its foreign shareholder.
- Exemption from Saudization quotas for a period of 10 years for RHQ employees.
- Streamlined visa processing and specialized services for RHQ executives.
"This incentive package provides the long-term certainty that global investors need," stated the Minister of Investment. It aligns directly with Vision 2030’s goal to position Riyadh as one of the world's top 10 city economies.
Why This Matters to Foreign Investors
Previously, foreign entities were subject to a standard 20% corporate income tax. The zero-tax regime drastically reduces the operational expenditure (OpEx) for companies using Saudi Arabia as a hub for their MENA operations. Furthermore, the RHQ license is now a prerequisite for bidding on government contracts exceeding SAR 1 million.
Action Plan for Investors
Companies currently operating in the region without a Saudi RHQ should urgently evaluate their structure to avoid losing access to government tenders. The deadline for full compliance is fast approaching, and early movers are already securing prime office locations and talent.