Sign In

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.
Comments and suggestions
Comments and suggestions
For any inquiries or notes about authority services or current page, please fill in the required information.
Add a comment
Was this page useful?
0 visitors said yes from 0 feedbacks

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