Al-Jadaan: Saudi Arabia to give tax reduction, VAT exemption in special economic zones

Saudi Gazette report

RIYADH — Minister of Finance Mohammed Al-Jadaan announced that Saudi Arabia will provide a permanent value-added tax (VAT) exemption on transactions between entities within special economic zones (SEZs) or between various special economic zones.

There will also be a tax discount for a period of 20 years within SEZs, he said.

The minister announced this while delivering his speech at the Saudi Special Economic Zones Investment Forum, here on Monday.

“We will work to give a reduction in taxes for a period of 20 years so that investors can make long term planning.

“We will also provide permanent exemption for social insurance tax for the employer as well as for transactions between companies in special economic zones and between companies in different SEZs,” he said.

He also emphasized that Saudi Arabia is the only country that obtained third positive ratings during 2023.