Riyadh, Saudi Arabia – Saudi Arabia has rolled out a 30-year tax relief program aiming to lure multinational corporations to establish their regional headquarters within the Kingdom.
The Ministry of Investment of Saudi Arabia (MISA), in collaboration with the Ministry of Finance and the Zakat, Tax, and Customs Authority (ZATCA), introduced this initiative to streamline the process for multinational companies (MNCs) to set up their regional bases in Saudi Arabia.
Under the Regional Headquarters (RHQ) Program, participating companies will benefit from substantial tax incentives, including a zero percent rate on corporate income tax and withholding tax related to approved RHQ activities.
“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,” Khalid Al-Falih, Minister of Investment, highlighted the significance of this tax incentive, said.
The RHQ Program, a joint effort of MISA and the Royal Commission for Riyadh City (RCRC), aims to attract multinational corporations and position Saudi Arabia as the primary commercial, industrial, and investment hub within the MENA region. Minister Al-Falih emphasized the Kingdom’s long-term economic stability, young and skilled workforce, strategic location, and strong growth prospects as attracting factors for leading companies.
Minister of Finance Mohammed Al-Jadaan expressed eagerness to welcome more multinational corporations to participate in various sectors, including mega-projects and upcoming international events like the 2029 Asian Winter Games and Expo 2030.
“This new incentive gives business 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,” Al-Jadaan said.
The RHQ Program, launched initially in 2021, has already licensed over 200 companies to operate their regional headquarters from Saudi Arabia. Additionally, as part of a complementary initiative, seven international K-12 schools have announced the establishment of their new campuses in the Kingdom, aligning with a dedicated supporting program targeting best-in-class international schools from around the world.
