Work out the withholding tax to deduct on a payment to a non-resident โ 5%, 15% or 20% depending on the payment type โ and apply a reduced tax-treaty rate where one exists.
Withholding tax to deduct (20%)
The withholding agent (the Saudi payer) must remit this WHT to ZATCA within the first 10 days of the month following payment. Treaty relief requires the payee's tax-residence certificate and a treaty application form.
Payments by a resident (or a permanent establishment) to a non-resident for services or income sourced in Saudi Arabia are subject to withholding tax under Income Tax Law Article 68 / Bylaws Article 63. The domestic rate depends on the payment type:
The withholding agent must remit the tax within the first 10 days of the following month. A double-tax treaty may reduce these rates with the payee's tax-residence certificate. Computing Zakat or income tax on the Saudi/foreign ownership split? See the Zakat calculator.
Domestic WHT rates are 20% on management fees, 15% on royalties and payments to a head office/affiliate for services, and 5% on dividends, interest, rent, technical & consulting services, air tickets and freight, international telecom, and insurance/reinsurance. Any other payment defaults to 15%.
A resident party (or a permanent establishment) that pays a non-resident for services rendered or income sourced in Saudi Arabia must deduct WHT at source and remit it to ZATCA.
The withholding agent must remit the WHT within the first 10 days of the month following the month in which the payment was made.
Yes. A double-tax treaty (DTT) may reduce the rate (for example, royalties to some treaty countries). Treaty relief requires the payee's tax-residence certificate and a treaty application form. A treaty can only reduce, never increase, the domestic rate.
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Disclaimer: Informational only โ not tax advice. WHT classification of a specific payment can be nuanced, and treaty rates vary by country and condition. Rates are based on Saudi Income Tax Law / Bylaws and PwC Worldwide Tax Summaries current as of 20 June 2026. Confirm your treatment with ZATCA (zatca.gov.sa) or a qualified Saudi tax adviser. See our full disclaimer.