Saudi Arabia Corporate Tax 2025
Calculate Zakat (2.5%) and Corporate Tax (20%) based on Ownership
Introduction
🎯 What
Calculates corporate tax payable by companies operating in Saudi Arabia based on taxable profits and ownership type.
👥 Who
Corporates registered in Saudi Arabia, Small/medium/large businesses, Accountants, and Financial planners.
💡 Why
To estimate corporate tax obligations, ensure compliance with ZATCA rules, 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 2025
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 standard corporate tax rate in Saudi Arabia?
A: 20% for foreign-owned companies; Zakat 2.5% for Saudi-owned.
Q: Can losses reduce current tax liability?
A: Yes, losses carried forward can offset taxable profit.
Q: Are mixed ownership companies taxed differently?
A: Yes, Saudi and foreign portions are taxed at respective rates (2.5% and 20%).
Q: Is Zakat separate from corporate tax?
A: Yes, Zakat is specific to Saudi-owned shares and calculated separately.
Disclaimer: This Saudi Corporate Tax Calculator 2025 is for informational and Google AdSense content use only. Rates, deductions, and rules are based on Saudi ZATCA and Income Tax Laws. ANTIGRAVITY is not responsible for legal, accounting, or financial decisions.