KSA sets tax rates on oil & hydrocarbon producers
The tax rate for investments exceeding $100bn will be 50%, SPA said. It gave other rates for producers with smaller investments
Saudi Arabia has set a range of income tax rates for producers of oil and hydrocarbons, the official Saudi Press Agency reported this week, quoting a royal decree.
The tax rate for investments exceeding 375bn riyals ($100bn) will be 50%, SPA said. It gave other rates for producers with smaller investments.
SPA did not say whether the announcement was directly related to national oil giant Saudi Aramco. Saudi authorities plan to sell shares in Aramco next year and have been considering whether to cut the effective tax rate on the company in order to facilitate the sale.
Aramco currently pays a 20% royalty and 85% tax to the government, Saudi officials have said.