The provisions of the Implementing Regulations of Income Tax law shall apply to resident capital companies with respect to shares of non-Saudi partners, whether they are resident or non-resident natural or legal persons. Shares of non-Saudi partners in resident capital companies shall not include shares of non-Saudis held for speculation purposes through trading shares of joint stock companies in the Saudi Stock Exchange. Shares of non-Saudis in mixed companies, which are partners in resident capital companies, are not considered Saudi shares for the purposes of this Law.
The Provisions of the Implementing Regulations shall also apply to natural or legal nonresident persons, whether Saudis or non-Saudis, who conduct business in the Kingdom through a permanent establishment or generate income within the Kingdom.
You can access the Implementing Regulations of Income Tax law by visiting the following link: Income Tax System