Riyadh, December 05, 2023, The Ministry of Investment of Saudi Arabia (MISA), in collaboration with the Ministry of Finance and the Zakat, Tax and Customs Authority (ZATCA), has introduced a 30-year tax incentive package for the Regional Headquarters (RHQ) Program. This initiative aims to facilitate the establishment of multinational companies' (MNCs) regional headquarters in Saudi Arabia. Under the RHQ 30-year tax relief incentive, MNCs will enjoy a zero percent rate for corporate income tax and withholding tax related to approved RHQ activities. This tax relief becomes effective from the day the RHQ license is obtained. The RHQ Program is a joint endeavor of MISA and the Royal Commission for Riyadh City (RCRC), designed to attract MNCs to establish their regional headquarters in Saudi Arabia. The program positions the Kingdom as a leading commercial, industrial, and investment hub in the MENA region. It offers various benefits and premium support services to complement Saudi Arabia's globally competitive value proposition. Since its launch in 2021, over 200 companies have been licensed to operate their RHQ from Saudi Arabia. Additionally, a dedicated supporting program has facilitated the establishment of seven international K-12 schools in the Kingdom. Minister of Investment Khalid Al-Falih emphasized that the tax incentive provides MNCs with an additional incentive to choose Saudi Arabia as their regional headquarters. He highlighted other advantages, such as relaxed Saudization requirements and work permits for RHQ executives' spouses. Minister Al-Falih also noted that the Kingdom's economic stability, skilled workforce, strategic location, and growth prospects have already attracted leading companies worldwide to establish their presence in Saudi Arabia. Minister of Finance Mohammed Al-Jadaan added that this new incentive provides businesses with greater visibility and certainty for future planning as MNCs expand their presence in the region through Saudi Arabia. He expressed enthusiasm for welcoming more MNCs to participate in projects across various sectors, including giga-projects, and in preparation for hosting events like the 2029 Asian Winter Games and Expo 2030.
