Saudi Arabia offers tax exemptions to multinational companies relocating headquarters
(MENAFN) According to Khalid Al-Falih, the Minister of Investment in Saudi Arabia, multinational companies that choose to relocate their headquarters to the Kingdom in 2023 with the objective of securing government contracts could receive tax exemptions. The minister revealed in an interview with the Financial Times that an announcement regarding the incentives are going to be released shortly to clarify the regulations for global firms.
This announcement is particularly significant at a time when Saudi Arabia is becoming a regional hub for foreign direct investments, as part of its economic diversification goals outlined in Vision 2030. The Minister went on to explain that the operations of multinational firms outside Saudi Arabia would be taxed in their country of operations and not mixed with the regional headquarters in the Kingdom.
The Regional Headquarters Program was launched in 2021 by Saudi Arabia's Ministry of Investments and the Royal Commission for Riyadh City. Its purpose is to attract global companies to open their headquarters in the Kingdom. According to Al-Falih, multinational companies that move their headquarters to the Kingdom will be taxed only for limited profits, and it is likely that these firms will be granted tax relief.
The move by the Saudi Arabian government to offer tax exemptions to multinational companies that relocate their headquarters to the Kingdom is an attempt to attract foreign investment and create more job opportunities for its citizens. This initiative is in line with Vision 2030, which aims to reduce the country's reliance on oil and diversify its economy. The Ministry of Investment is committed to creating a business-friendly environment that attracts foreign investment and stimulates economic growth in the Kingdom.
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