Taxes in Saudi Arabia: VAT, Zakat and income tax

What expats pay and what businesses must file.

Saudi Arabia3 min readLast updated 29 Oct 2026Fact-checked 29 Oct 2026

In short

Employees pay no income tax. VAT is 15% on most goods and services. Foreign-owned businesses pay 20% corporate income tax; Saudi and GCC owners pay 2.5% Zakat.

Income tax: 0% for employees
VAT: 15%
Corporate tax: 20% (foreign share)
Authority: ZATCA

Step by step

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Tick each step as you finish it. Open a step to see what to do.

VAT if turnover above SAR 375,000.

Documents checklist

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Commercial registration
Iqama or ID

Do’s and don’ts

Keep invoices in Fatoora format

Don’t

Don’t miss e-invoicing deadlines

Cost estimator

GOSI (expat employee)Not counted in the total2% paid by employer for occupational hazards

Untick what doesn't apply to you. These are rough figures and fees change often, so check with the authority.

Watch out

VAT penalties can be 5–25% of unpaid tax.

Common questions

Do expats pay GOSI pension?

Expats are covered only for occupational hazards, paid by the employer.

Official links

ZATCAzatca.gov.sa

Background and more detail

Employees pay no income tax. VAT is 15% on most goods and services. Foreign-owned businesses pay 20% corporate income tax; Saudi and GCC owners pay 2.5% Zakat.