​The provisions of the Income Tax Law apply to resident capital companies with respect to the shares owned by non-Saudi partners, whether such partners are natural or legal persons, resident or non-resident. Shares owned by non-Saudi partners in resident capital companies do not include shares acquired for speculative purposes through the trading of shares of joint-stock companies listed on the Saudi Capital Market. For the purposes of this Law, non-Saudi shares in mixed Saudi companies that participate in a resident capital company are not considered Saudi shares.

The provisions of the Law also apply to non-resident persons—whether natural or legal, Saudi or non-Saudi—who conduct business activities in Saudi Arabia through a permanent establishment therein, or who derive income from sources within Saudi Arabia.
For the purposes of this Law, taxable activity refers to all forms of activity of any kind, including commercial, industrial, agricultural, and service activities; banking; insurance; investments of any kind or in any field; transportation; leasing of tangible and intangible movable and immovable property; as well as professional, artisanal, or similar activities intended to generate profit, such as agency, brokerage, and the like.
This does not include the opening of bank accounts of any type (current, term deposit, or savings), or the trading of shares of companies listed on the Saudi Capital Market by a resident natural person.