Tax Advisory — KSA Corporate Tax & Zakat
KSA businesses face either corporate income tax or Zakat depending on ownership — foreign-owned shares pay corporate tax, Saudi and GCC-owned shares pay Zakat, and mixed-ownership entities face both. FMCA manages registration, filing and mixed-ownership structuring for UAE and KSA businesses operating across both regimes.
Reviewed by FMCA's Senior Tax Advisory Team — registered FTA tax agents serving clients across the UAE and Saudi Arabia.
Four connected parts of KSA compliance, coordinated with your UAE filings rather than handled in isolation.
Registration and filing for the foreign-owned share of a business, subject to corporate income tax rather than Zakat.
Zakat base calculation and filing for the Saudi and GCC-owned share of a business, calculated differently from net income.
Correctly apportioning tax and Zakat obligations when ownership is split between foreign and Saudi/GCC shareholders.
Related-party transaction documentation now required for both UAE and KSA entities under mixed ownership.
UAE and Saudi tax rules aren't variations of the same system — they're two separate regimes, plus a concept that doesn't exist in UAE law at all.
Applying corporate tax treatment to a Saudi-owned share, or Zakat treatment to a foreign-owned share, misstates the actual liability.
Corporate tax and Zakat follow separate filing calendars — tracking only one regime risks missing the other entirely.
Related-party transactions between UAE and KSA entities under mixed ownership need documentation — an increasingly enforced requirement.
This is why FMCA's KSA practice works from the same file as our UAE corporate tax team — registration timing, related-party transactions and cross-border structuring decisions are made with full visibility, not coordinated after the fact between two separate firms.
Ownership structure determines the answer — and mixed-ownership entities often face both.
Our Approach
FMCA's tax practice is led by registered FTA tax agents with real Dubai and Riyadh office presence — not a UAE firm subcontracting KSA work to a third party.
How We Work
Illustrative scenarios based on the kind of work we do — not descriptions of specific named clients.
Corporate tax and Zakat obligations correctly apportioned by ownership percentage for a newly registered Riyadh branch of a Dubai-based group.
Zakat base and corporate tax apportionment updated following a change in Saudi/foreign ownership split, avoiding a misstatement carried forward.
Related-party transaction documentation between UAE and KSA entities prepared proactively, ahead of ZATCA's tightened 2026 enforcement standards.
Explore Further
Dedicated pages covering the full scope of related work — explore each in depth.
Related Insights
FAQ
Zakat applies to the Saudi and GCC-owned share of a business, calculated on a Zakat base rather than net income; foreign-owned shares are instead subject to corporate income tax.
Most mixed-ownership entities face both obligations, apportioned by ownership percentage — corporate tax on the foreign share, Zakat on the Saudi/GCC share.
No — they're separate filing calendars under separate authorities. Tracking only one regime risks missing deadlines on the other.
Yes, for related-party transactions between UAE and KSA entities under common or mixed ownership — an increasingly enforced requirement under ZATCA's 2026 standards.
Yes — this is the specific gap FMCA's dual-market tax practice exists to close, with real Dubai and Riyadh office presence rather than a referral arrangement.
Tell us where things stand and a senior consultant will get back to you directly — not a call centre.
