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Saudi Arabia Withholding Tax Calculator 2023

Calculate tax on payments to non-residents (5%-15%)

Introduction

🎯 What

Computes withholding tax liability on payments made to non-residents or foreign suppliers.

👥 Who

Companies making payments to non-residents, Foreign contractors, Accountants, and Finance officers.

💡 Why

To estimate withholding tax liability, ensure compliance with Saudi tax law, and calculate net payments.

💰 Payment Details

👤 Recipient Information

Valid documentation required for treaty application

⚙️ Adjustments

Any tax already withheld on this payment

📊 Tax Summary

Enter values to calculate tax.

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Withholding Tax Rates 2023

Standard Rates

Services → 5% – 20%

Dividends → 5%

Interest → 5%

Royalties / Technical services → 15%

Exemptions

Payments to resident entities → 0%

Treaty benefits → 0% (if documented)

Government-approved payments → 0%

Calculation Examples

Example 1: Service Payment

Gross Payment: SAR 100,000 | Payment Type: Services | Rate: 15%
Withholding Tax = 100,000 × 15% = SAR 15,000
Net Payment = 100,000 − 15,000 = SAR 85,000

Example 2: Dividend Payment with Treaty

Gross Payment: SAR 50,000 | Payment Type: Dividends
Tax Treaty Applicable: Yes, Reduced Rate = 0%
Withholding Tax = 50,000 × 0% = SAR 0
Net Payment = SAR 50,000

Example 3: Interest Payment to Saudi Entity

Payment: SAR 20,000 | Type: Interest | Recipient: Saudi → Rate = 0%
Withholding Tax = SAR 0

Frequently Asked Questions

Q: Who is subject to withholding tax in Saudi Arabia?

A: Non-resident suppliers receiving payments from Saudi businesses.

Q: Can withholding tax rate be reduced?

A: Yes, if a tax treaty exists between Saudi Arabia and the recipient's country.

Q: Is withholding tax deductible?

A: It is applied on gross payment; no other deductions allowed.

Q: Are residents subject to withholding tax?

A: No, only non-resident payments are subject.

Q: Is this calculator official?

A: No, it is for informational purposes only.

Disclaimer: This Saudi Arabia Withholding Tax Calculator 2023 is for informational purposes only. Rates and rules are based on Saudi ZATCA withholding tax regulations. ANTIGRAVITY is not responsible for legal, accounting, or financial decisions.