A GCC company contracted with a resident company in Saudi Arabia to establish a plastic factory. Does its contract fall under the Income Tax or Withholding Tax?

A GCC company contracted with a resident company in Saudi Arabia to establish a plastic factory. Does its contract fall under the Income Tax or Withholding Tax?

Paragraph (b / 1) of Article Four of the Tax Law considers the following cases as permanent establishment for non-residents: construction sites, assembly facilities and its supervisory operation. Therefore, the GCC company that will execute such contract will be considered as a permanent establishment and will be subject to Income Tax, not Withholding Tax.

twitter
linkedin
email
print

This website uses cookies, and by continuing to use the website and its platforms. You agree to our Privacy Policy and Cookie Use Learn more

Accept and Continue

A GCC company contracted with a resident company in Saudi Arabia to establish a plastic factory. Does its contract fall under the Income Tax or Withholding Tax?

Add a comment

FAQ_171

A GCC company contracted with a resident company in Saudi Arabia to establish a plastic factory. Does its contract fall under the Income Tax or Withholding Tax?

Welcome to our Search page

FAQ_171 // <![CDATA[ _spBodyOnLoadFunctionNames.push("setupPageDescriptionCallout"); // ]]>

FAQ_171