Saudi Arabia will waive the VAT and reduce taxes in special economic zones

Mohammed Al-Jadaan, Saudi Arabia’s minister of finance, declared that the country would permanently exempt transactions between parties in special economic zones (SEZs) or between different SEZs from paying value-added tax (VAT). Additionally, he stated, there will be a 20-year tax break for SEZs.

On Monday, the minister made this announcement during his speech at the Saudi Special Economic Zones Investment Forum.

“We will endeavor to provide a tax break for a 20-year period so that investors may make long-term plans. He emphasized that Saudi Arabia is the only nation that received a third positive rating in 2023 and added, “We will also provide permanent exemption for social insurance tax for the employer as well as for transactions between companies in special economic zones and between companies in different SEZs.