Is Withholding Tax levied on a contract signed between a resident company and a non-resident company, bearing in mind that it does not have a permanent establishment in Saudi Arabia to repair equipment and machinery?

Any repair work carried out by the non-resident company which does not have a permanent establishment in Saudi Arabia will be subject to a 5% withholding tax as technical and consultancy services regardless of the place of service, as stipulated in the provisions of paragraphs (1) and (3) of Article 63 of the Tax Law.

Comments and Suggestions

For any inquiries or notes about authority services or current page, please fill in the required information.

Add a comment

Use of Cookies by this site is just to guarantee Ease of Access and better user experience while browsing. Continuation of your browsing acknowledges your approval for Terms and Conditions of this site and its use of Cookies.

When you visit any website, it may store or retrieve information on your browser, mostly in the form of cookies. This information might be about you, your preferences or your device and is mostly used to make the site work as you expect it to. The information does not usually directly identify you, but it can give you a more personalized web experience. Because we respect your right to privacy, you can choose not to allow some types of cookies. Click on the different category headings to find out more and change our default settings. However, blocking some types of cookies may impact your experience of the site and the services we are able to offer.

A government website registered with the Digital Government Authority.

Official Saudi Government websites URL ends with. gov.sa

Official Secure websites use HTTPS

Voice Commands

Font Size

Greyscale Mode

Is Withholding Tax levied on a contract signed between a resident company and a non-resident company, bearing in mind that it does not have a permanent establishment in Saudi Arabia to repair equipment and machinery?