Corporate Tax Advisory In Saudi Arabia
Corporate income tax (CIT) in Saudi Arabia applies to profits earned by non-Saudi or non-GCC shareholders in resident entities. Governed by the Zakat, Tax and Customs Authority (ZATCA), the CIT framework distinguishes between Zakat and income tax based on ownership structure. MFD Services supports clients by coordinating with licensed tax advisors to ensure accurate tax planning, documentation, and filing in line with Saudi regulations.
Why Corporate Tax Advisory Is Critical In Saudi Arabia
Proper corporate tax advisory helps businesses:
- Avoid penalties and audit exposure
- Structure ownership for optimal tax treatment
- Comply with ZATCA’s income tax laws
- Align with Vision 2030 fiscal mandates
- Prepare for audits, expansions, and investor reporting
MFD ensures that corporate tax strategies are compliant, documented, and commercially sound.
Types Of Businesses That Require Corporate Tax Advisory In Saudi Arabia
Corporate tax advisory is essential for:
- Entities with foreign ownership (partial or full)
- Multinational corporations operating in KSA
- Holding companies and investment vehicles
- Firms with cross-border income streams
- Businesses subject to ZATCA audit or review
MFD helps assess tax exposure and coordinates with certified professionals to manage compliance.
Taxation Advisory Services We Offer
What Are The Legal And Procedural Requirements For Corporate Tax In Saudi Arabia?
Corporate income tax applies at a flat rate of 20% on net adjusted profits attributable to non-Saudi/non-GCC shareholders. Mixed ownership entities must allocate profits proportionately between Zakat and CIT bases. Oil and hydrocarbon businesses may be taxed at higher rates (50%–85%), while RHQ and free zone entities may qualify for exemptions.
What Documents Are Needed For Corporate Tax Advisory In KSA?
Typical documentation includes:
- Commercial registration and tax certificates
- Shareholding structure and ownership breakdown
- Audited financial statements
- Profit allocation worksheets
- ZATCA portal credentials and filing history
- Transfer pricing documentation (if applicable)
MFD assists in compiling and reviewing these documents for filing and audit readiness.
Corporate Tax Advisory Cost, Duration, And Process
Estimated Pricing Advisory coordination fees start from SAR 10,000, depending on ownership complexity, income streams, and documentation volume.
Estimated Timeline Initial structuring and filing preparation typically take 2 to 4 weeks, with ongoing support aligned to fiscal year-end and audit cycles.
How The Process Works MFD begins by reviewing ownership and financial records, assessing tax exposure, and coordinating with certified advisors. We support documentation, portal submission, and audit preparation.
How Corporate Tax Advisory Supports Business Growth In Saudi Arabia
Strategic corporate tax planning helps businesses:
- Optimize tax liabilities and cash flow
- Strengthen governance and investor confidence
- Comply with ZATCA mandates and audit protocols
- Facilitate cross-border structuring and expansion
- Align with Vision 2030 fiscal and regulatory goals
MFD ensures that tax strategies are regulator-approved and commercially viable.
Contact Us
Book an Appointment with Us
Schedule a consultation with MFD Business Solutions today and discover how our expert Actuarial Valuation and financial consulting services can enhance the accuracy and reliability of your financial records.
What Challenges Do Companies Face With Corporate Tax In Saudi Arabia?
Common issues include:
- Misallocation of profits between Zakat and CIT
- Incomplete ownership documentation
- Errors in tax base calculation
- Exposure to audit penalties or disputes
- Lack of internal tax structuring expertise
How Our Services Solve Corporate Tax Issues
MFD Services offers structured coordination for corporate tax advisory:
- Ownership-based tax planning and allocation
- Liaison with ZATCA and certified tax professionals
- Filing preparation and portal submission
- Audit readiness and documentation review
- Post-filing compliance and reconsideration support
We ensure that corporate tax processes are accurate, timely, and regulator-compliant.
Why Choose MFD For Corporate Tax Coordination In Saudi Arabia
MFD Services is trusted by corporates, investors, and cross-border entities for corporate tax coordination. We work with licensed professionals to ensure that filings meet ZATCA regulations and ownership-based tax treatment standards.
Optimize Tax Strategy With Ownership-Aligned Corporate Tax Coordination
MFD Services helps businesses navigate Saudi Arabia’s corporate tax framework by coordinating with licensed professionals to structure filings, allocate profits, and ensure compliance with ZATCA mandates. Whether managing mixed ownership, preparing for audit, or planning cross-border expansion, we ensure your tax strategy is accurate, documented, and regulator-approved.
FAQ's
It’s a 20% tax on profits attributable to non-Saudi/non-GCC shareholders in resident entities.
Entities with foreign ownership or income from oil, gas, or hydrocarbon activities.
No, MFD coordinates with licensed tax advisors to manage filings and compliance.
Yes, RHQ and free zone entities may qualify for partial or full exemptions