Steven Ireland, head of tax for Creation Business Consultants, explains the differences between the tax services in UAE and the tax services in Saudi Arabia.
So what are the differences between the tax regimes of Saudi Arabia and the UAE? The biggest difference between the two jurisdictions is in relation to direct tax.
KSA companies are subject to either corporate income tax or Zakat. In the UAE. There is currently no corporate tax at the federal level, only taxation for oil and gas companies and branches of foreign banks. However, the UAE Ministry of Finance (MoF) announced in January 2022 that it will be introducing a Federal Corporate Tax from 1st of June 2023.
KSA also has Withholding Tax and Capital Gains tax but the UAE doesn’t have these taxes.