Saudi Arabia
Last reviewed: 21 August 2026 · Primary sources: ZATCA, GOSI and the Ministry of Human Resources
Country facts at a glance
- Currency: SAR — pegged at 3.75 per USD
- VAT: 15% standard rate
- Corporate tax: 20% on the non-GCC-owned share of profit
- Zakat: 2.5% of the zakat base on a Hijri year, 2.578% on a Gregorian year
- Personal income tax: None
- End of service: Half a month’s pay per year for years 1–5, then a full month; reduced on resignation below 10 years
- Social insurance: Saudi nationals 9.75% / 11.75% (legacy) or 10.75% / 12.75% (new system); expatriates 2% employer only
- Contribution cap: SAR 45,000 per month
- Minimum wage: SAR 4,000 for Saudi nationals under Nitaqat
- Working week: 48 hours; 36 hours for Muslim employees in Ramadan
Current decision alerts
- New-system GOSI rates rose to 10.75% employee and 12.75% employer from July 2026, and step up again each July through 2028.
- Classification follows an employee’s first GOSI registration date, not nationality — payroll teams get this wrong most often.
Practical country guidance
Banking & Money
Open a Saudi bank account as an expat
Iqama, national address, mobile verification and the onboarding checks banks run.
Salary payment and Mudad compliance
WPS-equivalent wage files and how mismatches are flagged.
Transferring money out of the Kingdom
Documentation thresholds and what exchange houses require.
Tax & Compliance
Zakat versus corporate income tax
How mixed ownership splits a company between the two regimes.
VAT registration and e-invoicing
Thresholds, filing cycles and the Fatoora integration phases.
Withholding tax on payments abroad
Rates by payment type and treaty relief in practice.
Visas & Residency
Iqama issue, renewal and transfer
Sequence, fees and the dependants process.
Premium Residency routes
Categories, thresholds and what the permit does and does not grant.
Exit and re-entry permits
Single and multiple options and the validity traps.
Business & Employment
Company formation and MISA licensing
Foreign ownership, capital requirements and post-licence registrations.
End-of-service benefits and resignation tiers
Why leaving before ten years can cut the payout by a third or more.
Saudization and Qiwa obligations
Nitaqat bands, contract registration and the effect on visa quotas.
Useful calculators
Zakat Estimator
GOSI Contributions
End-of-Service Gratuity
VAT Calculator
Employer Cost
Official portals
ZATCA
VAT, zakat, corporate tax, e-invoicing and customs
Zakat, Tax and Customs Authority
Qiwa
Contract registration, work permits and Nitaqat status
Ministry of Human Resources
GOSI
Social insurance registration and contribution filing
General Organization for Social Insurance
Absher / Muqeem
Iqama services, exit-re-entry and dependants
Ministry of Interior
Frequently asked questions
Do I pay income tax on my salary in Saudi Arabia?
No. There is no personal income tax on employment income for residents or expatriates.
How much gratuity do I get if I resign after six years?
Two thirds of the full entitlement. On resignation the payout is nil below two years, one third from two to five, two thirds from five to ten, and full at ten years or more.
Do expatriates pay GOSI?
Only the employer pays, at 2% for occupational hazards. Expatriates are not covered by the pension or SANED unemployment branches.
Is gratuity calculated on basic salary only?
Saudi Arabia is the exception in the region — the base includes regular allowances that form part of normal remuneration, not basic pay alone.
What is the GOSI salary cap?
SAR 45,000 per month of basic salary plus housing allowance. Anything above that is outside the contribution base.
How this page is maintained
General information only. Confirm current rules with the relevant authority.