Saudi Majlis al-Shura cuts foreign companies' profit tax

29 April 2003
Saudi Arabia's Majlis al-Shura (consultative council) on 28 April approved a cut in the tax on foreign companies' profits to a maximum 25 per cent from 45 per cent, in an attempt to attract higher levels of foreign investment to the kingdom. Tax exemptions are offered for spending on research and development. However, the legislation stipulates a maximum 85 per cent tax on hydrocarbon projects. The new law will now be passed to the Council of Ministers for approval. In January, the Majlis al-Shura rejected legislation which would have imposed income tax of 10 per cent on foreign workers (MEED 17:1:03).

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