The withholding tax is levied on the net profits of the non-resident partner after deducting the tax due by the resident company on this partner’s share of the profits. For example, If the share of the non-resident partner in the total profits realized after the reserves are SR 1,000,000, the income tax due on the Company is at 20% of this person’s share and worth SR 200,000, therefore the withholding tax is levied on the distributable net profit to the non-resident partner which is SR 800,000.
​