Doing Business in Saudi Arabia

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Dr. M. Al Amri &Co.

Doing Business in

Saudi Arabia

Dr. M. Al Amri &Co.

DOING BUSINESS IN SAUDI ARABIA
Contents ________________________________________________

Page

Preface

General Information Geography and climate Population and language Government Currency and foreign exchange regulations The calendar and international time zone Business hours Public holidays

1

The Economy General Basic resources Principal industries Banks Other financial institutions Stock exchange

4

Investment Regulations and Incentives General Regulations governing foreign investment Business incentives

7

Company Law General Business entities Legal structures allowed to foreign investors

9

(i)

Dr. M. Al Amri &Co.

Page

Establishing a Business Presence Licensing and registration Sponsorship, agencies, government contracts, branch and representative offices Intellectual property laws Other formalities Labor Law and Social Insurance General Labor relations Working hours, holidays and vacations Termination of employment Pay rates, overtime and bonuses Social insurance

12

14

Imports and Custom Duties General policy Imports Customs duties

16

Accounting and Auditing The profession Standards and reporting Accounting periods Accounting records

17

Taxation General Zakat Income tax Income tax rates Withholding tax Other taxes Administration of tax Dividends Supply contracts Deduction of expenses Treatment of losses Group taxation Taxation of branches of foreign companies Example : Corporate Income Tax Calculation

19

26

_______________________________________________________________________________ (ii)

Dr. M. Al Amri &Co.

PREFACE
________________________________________________________________

This profile on doing business in Saudi Arabia has been prepared by Dr. M. Al-Amri & Co. the member firm of Baker Tilly International in Saudi Arabia. The profile is designed to provide information on a number of subjects important to those contemplating investment or doing business in Saudi Arabia. Economic policy in Saudi Arabia generally welcomes foreign investment, evidenced by the various government and tax incentives discussed in this profile. Foreign investors, however, are subject to a number of government regulations and tax laws. This profile provides, in condensed form, a summary of the rules, regulations, and tax laws that could affect the foreign investors. This profile is a general guide to the regulatory and tax aspects of investments or business activities in Saudi Arabia and does not purport to be an exhaustive reference source. The decision making process concerning foreign investment is a complex exercise and the commercial environment of a country continually changes. If you are a foreign investor contemplating investment or doing business in Saudi Arabia, you should obtain up-to-date detailed advice and consult with your financial and tax advisor. Should you require further information or advice on the subject of doing business in the Kingdom, Baker Tilly International’s member firm in Saudi Arabia will be pleased to assist. Baker Tilly International is one of the leading firms of public accountants and tax and management consultants in the world. The firm’s network comprises over 17,000 staff in 480 offices around the globe. This guide is one of a series of country profiles compiled for use by Baker Tilly International’s clients and professional staff which may be obtained from any of our international offices or, within the Kingdom of Saudi Arabia, from Dr. M. Al-Amri & Co. Every care has been taken in the preparation of this profile which has been compiled from various documents and other reference sources of information available. Nevertheless this material may contain errors and omissions for which Baker Tilly International cannot assume responsibility.

__________________________________________________________________________ June 2007

Dr. M. Al...
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