VAT and Zakat: a guide for foreign-owned companies
Once your company is registered, you'll generally need to register with the Zakat, Tax and Customs Authority (ZATCA) for VAT if your revenue crosses the mandatory threshold, and file returns periodically.
Zakat and income tax work differently depending on ownership: the Saudi-owned share of a company is typically subject to Zakat, while the foreign-owned share is typically subject to income tax, so mixed-ownership companies deal with both.
Exact rates and thresholds can change, so any figures discussed with us are for general guidance and are not a substitute for a formal tax opinion.
We help set up the right registrations from day one and connect you with ongoing bookkeeping support so nothing is missed. Message us on WhatsApp for details specific to your structure.