Withholding tax in Saudi Arabia 2026

Personal income flows carry no withholding — the working rates sit on cross-border business payments: 5% on dividends, interest and directors' fees, 15% on royalties and service fees, and 20% on contracts to run an enterprise.

These withholdings are final for non-residents without a Saudi permanent establishment, with treaty rates overriding.

At a glance

top rate: 20% (enterprise-management contracts)
entry band: 5% (dividends, interest, directors' fees)
tax year basis: Withheld per payment
filing deadline: Withholding agents remit to the tax authority
residency basis: Saudi-source payments to non-residents
regime flag: No withholding on salaries — employment income is untaxed

Rates

Withholding on payments from Saudi Arabia (2026)

Rate	Base	Applies to
0%	—	Salaries and all employment income — no tax exists to withhold
5%	Gross	Dividends, interest and loan income paid to non-resident individuals; directors' fees
15%	Gross	Royalties, and fees for services, going to non-resident individuals
20%	Gross	Payments under contracts to run an enterprise

Residency

Residency trigger

Resident payers withhold on Saudi-source payments to non-residents; rental payments to non-residents can also fall under the general withholding provisions.

Non-resident treatment

Withholding is final without a permanent establishment; treaty relief follows the standard certificate route, and there is no imputation credit.

Notes

Non-residents' gains on unlisted Saudi shares are taxed at 20% under source rules — restructuring transactions have dedicated authority guidance.
Business taxpayers follow corporate filing and payment procedures; individuals with only personal income never interact with the tax authority.
Saudi Arabia's treaty network is broad and matters mostly for reducing these outbound withholdings.

FAQ

Does Saudi Arabia withhold tax on payments abroad?

On business payments, yes — 5% dividends and interest, 15% royalties and service fees, 20% enterprise-management contracts; salaries carry nothing.

Do foreign investors pay tax on Saudi share sales?

Only on unlisted shares — 20% on the gain; securities traded under stock-market regulations (acquired from 30 July 2004) are exempt.

Figures: tax year 2026, compiled from public sources. Not tax advice.

See withholding tax in other countries

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