In a bid to attract foreign investment into Saudi Arabia, the nation’s Shura consultative council has approved tax cuts on foreign firms’ profits from 45 percent to 25 percent. The measure awaits approval from the Council of Ministers.
The legislation offers tax exemptions for foreign investment, particularly for spending on research, development, and geological studies. It also allows losses to be carried over from one year to the next.
In joint ventures with Saudi partners, taxes will be imposed on the foreign firm’s share. The measure also sets taxes at five percent on sales of tickets, freight, and mail for international airlines operating in the Kingdom. — (menareport.com)
© 2003 Mena Report (www.menareport.com)
