Saudi Arabia develops special economic benefits

27.04.2023 The Department of Economic Cities and Special Zones of Saudi Arabia (ECZA) has issued a brochure on new special economic zones (SEZ), which specifies the following benefits for the SEZ "King Abdullah Economic City" (KAEC), SEZ "Ras Al-Khair" and SEZ "Jazan":

• 5% corporate income tax on term up to 20 years;
• 0% withholding tax on a permanent basis for the repatriation of profits from the SEZ to foreign countries;
• 0% deferred payment of customs duties on goods within the SEZ;
• 0% VAT on all goods within the SEZ exchanged within the zone and between zones;
• benefits for foreign talent during the first 5 years;
• tax exemption for employees and their family members in the zones.
The brochure also lists priority industries for each FEZ.
In addition, special attention was paid to the special integrated logistics zone (SILZ), which was launched earlier and gives the right to use the following benefits:
• no customs duties on goods imported or transported within SILZ;
• no VAT on goods imported into the zone for maintenance or production;
• 0% corporate income tax;
• exemption from withholding tax and money transfer tax;
• no restrictions on the repatriation of capital;
• permission to own 100% of the company's capital by a foreigner.

Tax benefits are provided for up to 50 years. The main sectors of the SILZ economy include consumer goods, computer components, pharmaceuticals, food and medical products, spare parts for the aerospace industry, as well as luxury goods, jewelry and precious metals.

Link to source: https://sez.ecza.gov.sa/pdf/special_economics_zone_brochure_english.pdf