Saudi Arabia Corporate Tax Calculator 2026 (20%)
Estimate corporate income tax in Saudi Arabia on any profit: tax due, effective rate and profit after tax, with the 20% headline rate and the reduced rates in force in September 2026.
The calculation runs in your browser: nothing you type is uploaded or stored. Results are estimates for planning, not tax advice. Check your own case with your adviser or the tax authority.
Corporate tax rules in Saudi Arabia
Profit share owned by non-Saudi / non-GCC persons: income tax 20% of net adjusted profit: a flat 20% on taxable profit. Share owned by Saudi and GCC nationals: zakat at 2.5% of the zakat base (a net-worth measure, not profit); use the zakat estimator: Zakat = 2.5% x zakat base x Saudi/GCC ownership share. The zakat base is the entity's net worth as measured for zakat (not taxable profit), so it cannot be calculated from profit alone: use the zakat estimator.. Oil and hydrocarbon production: 50% to 85% income tax (not modelled): Income from oil and hydrocarbon production is taxed at 50% to 85%; not modelled..
Taxpayer's financial year (Gregorian or Hijri); rates unchanged for 2026
20% income tax (foreign share) / 2.5% Zakat on the Zakat base (Saudi/GCC share)
Who qualifies for the lower rates
- GCC nationals are treated as Saudi for tax purposes and are subject to Zakat, not income tax.
- Approved Regional Headquarters (RHQ): 0% income tax and 0% WHT on qualifying RHQ income for 30 years; Zakat, VAT and GOSI still apply.
- Withholding tax on payments to non-residents ranges from 5% to 20%.
Local taxes and minimum taxes
No local, state or provincial income taxes
No Pillar Two domestic minimum top-up tax listed by PwC for Saudi Arabia as of July 2026 - not modelled
Filing and payment
Return and final payment within 120 days of year-end; three advance payments (last day of months 6, 9 and 12) where required
How the calculation works
The calculator applies the rates in the order the law does: band by band where a country taxes profit in slices, or one rate to the whole profit where eligibility decides the rate. Surcharges are applied to the tax, local business taxes to the profit. The result is an estimate: it does not include loss relief, tax credits, deferred tax or group rules.
Frequently asked questions
What is the corporate tax rate in Saudi Arabia?
Profit share owned by non-Saudi / non-GCC persons: income tax 20% of net adjusted profit: a flat 20% on taxable profit. Share owned by Saudi and GCC nationals: zakat at 2.5% of the zakat base (a net-worth measure, not profit); use the zakat estimator: Zakat = 2.5% x zakat base x Saudi/GCC ownership share. The zakat base is the entity's net worth as measured for zakat (not taxable profit), so it cannot be calculated from profit alone: use the zakat estimator.. Oil and hydrocarbon production: 50% to 85% income tax (not modelled): Income from oil and hydrocarbon production is taxed at 50% to 85%; not modelled..
How much corporate tax is due on a profit of SAR 1,000,000.00?
On a taxable profit of SAR 1,000,000.00 this calculator estimates SAR 200,000.00 of tax, an effective rate of 20%, before any credits, losses or local adjustments. Change the inputs above to model your own figures.
Who qualifies for the reduced rates?
GCC nationals are treated as Saudi for tax purposes and are subject to Zakat, not income tax. Approved Regional Headquarters (RHQ): 0% income tax and 0% WHT on qualifying RHQ income for 30 years; Zakat, VAT and GOSI still apply. Withholding tax on payments to non-residents ranges from 5% to 20%.
When is the corporate tax return due?
Return and final payment within 120 days of year-end; three advance payments (last day of months 6, 9 and 12) where required
Does the estimate include local taxes and minimum taxes?
No local, state or provincial income taxes. No Pillar Two domestic minimum top-up tax listed by PwC for Saudi Arabia as of July 2026 - not modelled.
Is the result my exact tax bill?
No. It applies the statutory rates to the profit you enter. Your real bill depends on how taxable profit is computed (non-deductible costs, losses brought forward, allowances), on credits and on advance payments already made.
Are these rates up to date?
They were checked against PwC and the other sources listed on this page on 30 September 2026. If a rate changes, type the new one into the rate field and the result updates at once.
Sources
- PwC Worldwide Tax Summaries (authoritative) - Saudi Arabia - Corporate - taxes on corporate income — PwC
- PwC Worldwide Tax Summaries (authoritative) - Saudi Arabia - Corporate - tax administration — PwC
- PwC Worldwide Tax Summaries (authoritative) - Saudi Arabia - Corporate - significant developments — PwC
- Nexus research sheet facts-gcc-2026-09.md (CIT/Zakat section, verified 2026-09-28) — internal
Rates, bands and thresholds were checked against these sources on 30 September 2026. Tax rules change: if a rate has moved, edit it in the calculator above.
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