Finance & Tax
Withholding Tax Calculator
Calculate Saudi withholding tax on payments to non-residents
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- No Signup
- Calculated in your browser
The agreed amount before any tax deduction.
Applied rate
Pick the standard rate or apply a tax-treaty rate.
Rate
Withholding amount
Net to recipient
How does it work?
Withholding tax is deducted from payments a Saudi business makes to a non-resident party and remitted to the Zakat, Tax & Customs Authority. Rates differ by payment type per Article 68 of the Income Tax Law.
Standard rates
Default rates per the Saudi Income Tax Law:
| Payment type | Rate |
|---|---|
| Royalties | 15% |
| Management fees | 20% |
| Technical services | 5% |
| Rent | 5% |
| Dividends | 5% |
| Loan interest | 5% |
| Insurance premiums | 5% |
| International air tickets | 5% |
| Other payments | 15% |
Double-tax treaties
If the recipient is a resident of a country with a double-tax treaty with Saudi Arabia, the rate may drop (e.g. royalties at 5%). Use the 'custom rate' option to apply the treaty rate; retain the tax-residency certificate.
Withholding agent obligations
- Deduct the rate from the amount due before paying the recipient.
- Remit the tax within 10 days of the end of the payment month.
- Issue a withholding certificate to the recipient for use in their country.
- File an annual summary of all withholdings.
- Retain withholding records for 10 years.
Frequently Asked Questions
When does withholding tax apply?
When a Saudi business pays a non-resident for a service or right, provided the source of the income is Saudi.
Does it apply to non-Saudi employees?
No — salaries are subject to GOSI, not withholding tax. Withholding is for non-resident payees who aren't employees.
How do I use a tax treaty?
Obtain a tax-residency certificate from the recipient's tax authority and retain it. Apply the treaty-reduced rate via the 'custom rate' option.
Royalties vs. technical services?
Royalties pay for the use of IP rights (patents, trademarks, copyrights) at 15%. Technical services pay for specific consulting/engineering at 5%.
What if I forget to withhold?
Your business absorbs the tax plus a 1% monthly penalty on the unpaid amount — so withholding upfront is mandatory.
Does it apply to Amazon or AliExpress purchases?
Goods imported from global marketplaces are subject to VAT and customs, not withholding. Withholding is for services and rights, not goods.
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