Saudi Arabia Corporate Tax 2024
Calculate Zakat (2.5%) and Corporate Tax (20%) based on Ownership
Introduction
🎯 What
Computes corporate income tax liability for companies operating in Saudi Arabia.
👥 Who
Local and foreign companies, Business accountants, Financial planners, and Tax consultants.
💡 Why
To estimate annual corporate tax liability, ensure compliance with Saudi corporate tax law, and assist in financial planning.
🏢 Company Details
📊 Income & Expenses
⚙️ Tax Adjustments
Depreciation, charitable contributions
💵 Tax Liability
Enter values to compute Tax.
Detailed Calculation Steps
Corporate Tax Slabs & Rates 2024
Standard Rates
- Saudi-owned companies: 2.5% Zakat on Zakatable profit
- Foreign-owned companies: 20% Corporate Tax on taxable profit
- Mixed ownership: Proportional rates (2.5% Saudi share + 20% Foreign share)
Allowances & Deductions
- Operating expenses (rent, salaries, utilities)
- Depreciation of fixed assets
- Business-related loan interest
- Charitable contributions (Zakat-adjusted)
- Losses can be carried forward
Calculation Examples
Example 1: Saudi-owned Company
Revenue: SAR 500,000 | Expenses: SAR 200,000
Taxable Profit = 300,000
Zakat = 300,000 × 2.5% = SAR 7,500
Example 2: Foreign-owned Company
Revenue: SAR 1,000,000 | Expenses: SAR 400,000
Taxable Profit = 600,000
Corporate Tax = 600,000 × 20% = SAR 120,000
Example 3: Mixed Ownership (50% Saudi, 50% Foreign)
Revenue: SAR 800,000 | Expenses: SAR 300,000 | Taxable Profit = 500,000
Saudi Share (50%): 250,000 × 2.5% = SAR 6,250 (Zakat)
Foreign Share (50%): 250,000 × 20% = SAR 50,000 (Corporate Tax)
Net Tax = SAR 56,250
Frequently Asked Questions
Q: What is the corporate tax rate in Saudi Arabia?
A: Standard rate is 20% for non-Saudi shareholding.
Q: Are Saudi-owned companies subject to corporate tax?
A: Saudi-owned shareholding pays Zakat at 2.5%, not standard corporate tax.
Q: Can losses reduce current tax liability?
A: Yes, losses carried forward can offset taxable profit.
Q: Are Zakat payments deductible?
A: Zakat is applied separately and may offset corporate tax for Saudi shareholders.
Q: Can deductions reduce taxable income below zero?
A: No, taxable income cannot be negative.
Disclaimer: This Saudi Corporate Tax Calculator 2024 is for informational purposes only. Rates, deductions, and rules are based on Saudi ZATCA corporate tax regulations. ANTIGRAVITY is not responsible for legal, accounting, or financial decisions.