ZATCA WHT · Non-Resident Payments · 5%–20% Rates

Withholding Tax Saudi Arabia

Complete withholding tax compliance for Saudi businesses making payments to non-resident service providers — calculation, ZATCA filing, certificates, and DTA claims.

Withholding tax compliance documents Saudi Arabia
WHT Compliance KSA
Withholding Tax (WHT) in Saudi Arabia applies when a Saudi-registered entity makes payments to a non-resident (a person or company without a permanent establishment in Saudi Arabia) for services, dividends, interest, royalties, management fees, or technical services. The Saudi entity is legally responsible for withholding the tax at source, remitting it to ZATCA, and issuing a WHT certificate to the payee.

WHT rates in Saudi Arabia range from 5% to 20% depending on the payment type. Failure to withhold and remit exposes the Saudi payer — not the foreign payee — to a penalty of 25% of the withheld amount plus daily interest. Intelli Solutions provides complete WHT compliance services — from determining whether WHT applies to a specific payment, calculating the correct rate, filing the ZATCA WHT return, and claiming relief under Saudi Arabia's Double Taxation Agreements (DTAs).

Withholding Tax Rates in Saudi Arabia (2026)

Payment Type WHT Rate Notes
Services (consulting, professional, technical)5%Most common — applies to IT, legal, management fees
Dividends5%Paid to non-resident shareholders
Interest5%On loans from non-resident lenders
Royalties / IP licensing15%Trademarks, patents, software licenses
Air transport / international freight5%Payments to non-resident airlines/freight companies
Reinsurance5%Paid to non-resident reinsurers
Other payments to non-residents20%Residual category — applies where no specific rate

Rates may be reduced or eliminated under applicable Double Taxation Agreements. DTA relief requires a tax residency certificate from the foreign payee's home country tax authority and ZATCA approval.

Our Withholding Tax Services

1

WHT Applicability Review

Analysis of all non-resident payments to determine whether WHT applies — many companies incorrectly apply or omit WHT due to misclassification of payment types.

2

DTA Relief Assessment

Review of applicable Double Taxation Agreements to identify reduced WHT rates — Saudi Arabia has DTAs with 50+ countries including UK, USA, France, China, India, and GCC states.

3

ZATCA WHT Filing

Preparation and submission of monthly WHT returns through ZATCA's electronic portal, with all required supporting documentation.

4

WHT Certificate Issuance

Generation of ZATCA-compliant WHT certificates for foreign payees — required by many jurisdictions to claim DTA relief or foreign tax credits.

5

Penalty Resolution

Assessment and resolution of WHT non-compliance penalties — including voluntary disclosure for historical omissions and ZATCA objection management.

By the numbers

Withholding Tax Saudi Arabia — Key Facts

5%–20%
WHT rate range
10 days
ZATCA remittance deadline
25%
Penalty for non-withholding
50+
Saudi DTA partner countries
FAQ

Frequently Asked Questions — Withholding Tax Saudi Arabia

The Saudi-registered payer is legally responsible for withholding WHT from the payment to the non-resident, remitting it to ZATCA within 10 days of the month following the payment, and issuing the WHT certificate. If the payer fails to withhold, ZATCA holds the payer liable for the full WHT amount plus a 25% penalty — the foreign payee's non-compliance is irrelevant under Saudi law.
Yes. Payments between related parties — such as management fees, royalties, or intercompany loans from a Saudi subsidiary to a foreign parent — are subject to WHT at the applicable rates. Additionally, transfer pricing rules require that intercompany pricing be at arm's length, and ZATCA may challenge WHT deductions on non-arm's-length payments.
No. WHT applies based on the nature of the payment and the residency status of the payee — not the invoice currency. A non-resident supplier invoicing in SAR is still subject to WHT at the applicable rate. The obligation to withhold exists regardless of the currency, contract structure, or billing arrangement.

Making Payments to Non-Residents?

Ensure your WHT is calculated correctly and filed on time. Our team handles all ZATCA WHT obligations. Free initial review.

SOCPA Approved ZATCA Certified Free Consultation Est. 2010