iCalculator™ SA: Saudi Arabia Tax Calculators

Welcome to iCalculator™ SA, your comprehensive suite of free tax calculators for Saudi Arabia. iCalculator™ has provided free tax calculators for Saudi Arabia since 2019. Since those early days we have extended our resources for Saudi Arabia to includes Tax Guides, Tax Videos and enhanced the tax calculators and supporting tax information. The Saudi Arabia Tax Calculator and salary calculators within our Saudi Arabia tax section are based on the latest tax rates published by the Tax Administration in Saudi Arabia. In this dedicated Tax Portal for Saudi Arabia you can access:

Saudi Arabia Tax Calculator 2024/25

The Saudi Arabia Tax Calculator below is for the 2024 tax year, the calculator allows you to calculate income tax and payroll taxes and deductions in Saudi Arabia. This includes calculations for

1. Employees in Saudi Arabia to calculate their annual salary after tax.
2. Employers to calculate their cost of employment for their employees in Saudi Arabia.

Discover Saudi Arabia

Saudi Arabia, the heart of the Arab and Islamic worlds, the powerhouse of the Middle East, is renowned for its vast deserts, its pivotal role in Islam, and its abundant oil reserves. This overview highlights Saudi Arabia's geographical setting, cultural dynamics, and economic landscape.

Saudi Arabia is located on the Arabian Peninsula and is bordered by Jordan and Iraq to the north, Kuwait to the northeast, Bahrain, Qatar, and the United Arab Emirates to the east, Oman to the southeast, and Yemen to the south. The Red Sea lies to its west, and the Persian Gulf is to the northeast, making it strategically important in terms of both geography and economics.

Saudi Arabia is the birthplace of Islam, housing the two most sacred mosques in Islam, Al-Masjid al-Haram in Mecca and Al-Masjid an-Nabawi in Medina, making it a spiritual hub for Muslims worldwide. The country's culture is deeply rooted in Islamic traditions, influencing its architecture, music, attire, and daily life. Saudi Arabia is known for its hospitality and the preservation of its heritage, even as it embraces modernity.

The economy of Saudi Arabia is predominantly oil-based, with the country being the world's largest oil producer and exporter. The oil sector accounts for a significant portion of its GDP, government revenue, and export earnings. However, under its Vision 2030, Saudi Arabia is undergoing an ambitious transformation aimed at diversifying its economy beyond oil, focusing on sectors such as tourism, entertainment, and renewable energy.

As the cornerstone of the Saudi economy, the energy sector, particularly oil and gas, plays a pivotal role. Saudi Aramco, the state-owned oil company, is the most valuable company in the world, managing the second-largest proven oil reserves. The country is also investing in renewable energy sources, including solar and wind, to reduce its dependence on fossil fuels.

With the launch of tourist visas and major cultural projects like NEOM, the Red Sea Project, and Qiddiya, Saudi Arabia aims to become a leading tourism destination. These initiatives are part of Vision 2030’s goal to diversify the economy and create new sources of revenue and jobs.

The financial sector in Saudi Arabia is witnessing significant growth, with the Saudi Stock Exchange (Tadawul) being the largest in the Middle East. The country is attracting foreign investment through reforms and initiatives such as the Public Investment Fund, one of the largest sovereign wealth funds globally, driving the economic diversification strategy.

In conclusion, Saudi Arabia’s strategic location, rich cultural heritage, and abundant natural resources, combined with its efforts to diversify the economy, make it a key player on the global stage. Its commitment to cultural preservation, economic development, and regional leadership continues to shape its path towards a promising future.

Tax Overview of Saudi Arabia

The Kingdom of Saudi Arabia has a taxation system that is notable for its encouragement of business and investment, both local and foreign. This overview provides insights into the structure of taxation in Saudi Arabia, focusing on how it impacts businesses and individuals, and highlighting the kingdom's approach to taxation within its broader economic framework.

Corporate Taxation

Corporate tax in Saudi Arabia is levied on the profits of companies that operate within the Kingdom. This includes both domestic companies and foreign entities with a permanent establishment in the country. The tax system is designed to support the growth of businesses while ensuring a fair contribution to the nation's economy.

Value-Added Tax (VAT)

Value-Added Tax (VAT) was introduced in Saudi Arabia as part of the Gulf Cooperation Council (GCC) agreement to diversify revenue sources away from oil. It is applied to most goods and services, with certain essential items being exempt or subjected to a zero rate to lessen the burden on consumers.

Personal Income Tax

One of the distinctive features of Saudi Arabia's tax system is the absence of personal income tax. Residents and citizens do not pay taxes on salaries, wages, or other forms of personal income, making the kingdom an attractive destination for talent and investment.

Excise Taxes

Excise taxes in Saudi Arabia are levied on specific goods that are deemed harmful to public health or the environment. These include tobacco products, energy drinks, and carbonated drinks. The aim is to reduce consumption of these products while generating additional government revenue.

Real Estate and Property Taxes

While Saudi Arabia does not impose a general property tax, there are fees associated with the registration of property rights and transactions. Additionally, a "white land tax" is levied on undeveloped urban land held for speculative purposes, encouraging the development of real estate projects and addressing housing affordability.

Zakat

Zakat, an Islamic finance principle, is a form of almsgiving treated as a religious obligation or tax for Muslims. In Saudi Arabia, Saudi-owned companies and Saudi nationals are subject to Zakat, which is calculated on the wealth of the company or individual, intended to support charitable activities and social welfare.

The taxation system in Saudi Arabia is a pivotal element of the kingdom's economic strategy, designed to foster growth, diversification, and investment. With a focus on business-friendly policies and the absence of personal income tax, Saudi Arabia aims to maintain its position as a leading economy in the Middle East. For detailed information on current tax regulations, tools, and tables, offering a comprehensive resource for navigating the Saudi tax system, visit our tax hub.