Headline: Are You Paying 20% Corporate Income Tax? Here’s How To Switch To 2.5% Zakat Leg
📍 Riyadh
🕐 2 months ago
👁 5,326 views
SAR 0
Description
Hello, I am a Saudi Engineer, offering a strategic business solution for foreign business owners residing in the Kingdom who are currently operating under foreign commercial registrations. The Hidden Cost of Operating as a Foreign Entity: Most expat business owners don't realize that owning a 100% foreign company in Saudi subjects you to Corporate Income Tax (CIT). However, if you outsource your operations to a local Saudi entity (mine), you fall under the Zakat regime. The financial impact is massive: Aspect Your Foreign Company My Saudi Company (The Solution) Taxation System Corporate Income Tax (CIT) Zakat (Islamic wealth tax) Applicable Rate 20% of net profits 2.5% of the Zakat base Calculation Basis Only on net taxable income On the Zakat base (Assets - Current Liabilities) Mixed Ownership Foreign share is taxed at 20% Saudi share is taxed at 2.5% In simple numbers: The 20% you pay on your profits today is reduced to just 2.5% when working through my entity. Additional Cost Breakdown (Non-Tax Differences): Cost Item Your Foreign Company My Saudi Company Withholding Tax (WHT) 5% – 20% on payments to non-residents Not applicable (treated as local transactions) Annual Commercial License Fees High (previously up to SAR 10,000+) Minimal government fees Expat Dependent Fees Up to SAR 9,600/year per expat employee Significantly reduced or exempt based on activity Saudization (Nitaqat) Ratios Strict mandatory rates (e.g., 20% for Engineering, 25% for Construction) I manage the entire Nitaqat profile on your behalf My Transparent Financial Offer: ✅ I charge only 5% of the total value of every invoice issued for your work. ✅ This fee covers: Complete document management, official invoicing (FATOORA), government portal follow-ups, and the calculation/deposit of Zakat and VAT due to ZATCA. ✅ Zero hidden fees – no annual retainers or surprise charges. Bonus Service (Free Strategic Consulting): As a Saudi Engineer deeply familiar with the local market, I will act as your business partner. I will help you develop and expand your projects, network with government entities, and secure local contracts under the umbrella of a trusted national partner. --- 📢 For Referral Partners (Marketing Commission): Do you know foreign business owners in Saudi? If you refer them to me and they sign up, you will receive a 5% commission on the total value of their first 3 invoices issued through my company. A thank you for your trust and network.
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