Corporate Income Tax Saudi Arabia
Complete CIT compliance for foreign-owned and mixed-ownership companies in Saudi Arabia — annual returns, advance payments, and ZATCA audit support.
CIT is administered by ZATCA and shares the same filing portal and audit framework as Zakat. The annual CIT return must be filed within 120 days of the financial year-end, with quarterly advance CIT payments required during the year based on the prior year's liability. Intelli Solutions provides complete CIT compliance services — from computing taxable income and preparing the annual return to managing advance payments and representing clients in ZATCA CIT audits.
How CIT is Calculated in Saudi Arabia
Start: Accounting profit
Begin with the net profit per audited financial statements for the year.
Add back: Non-deductible expenses
ZATCA disallows certain deductions including excessive related-party charges, entertainment expenses above the limit, penalties, non-business expenses, and interest above the thin capitalisation limit.
Deduct: Tax allowances
Eligible capital allowances on depreciable assets — ZATCA has specific depreciation rates for different asset classes that may differ from accounting depreciation.
Apply: Foreign shareholder percentage
Multiply the taxable income by the foreign shareholder's ownership percentage — this is the income subject to CIT. Saudi/GCC shareholder portions are subject to Zakat.
Apply: CIT rate of 20%
The 20% CIT rate is applied to the foreign shareholder's portion of taxable income. There is no reduced rate for SMEs or specific sectors (with narrow exceptions for certain upstream oil & gas activities taxed at 85%).
Corporate Income Tax Saudi Arabia — Key Facts
Frequently Asked Questions — Corporate Income Tax Saudi Arabia
Other Tax & Zakat Services
Foreign-Owned Company in Saudi Arabia?
Our CIT specialists handle your annual return, advance payments, and ZATCA correspondence. Free CIT assessment for new clients.