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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.
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Last Update: 04 Sep 2020 06:15 PM Saudi Arabia Time