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

Comments and Suggestions

For any inquiries or notes about authority services or current page, please fill in the required information.

Add a comment