Employer Tax Contributions

Tax Type	Rate	Base
Corporate Income Tax	20%	Net-adjusted profits for non-Saudi/non-GCC owned entities.
Zakat	2.5%	Net worth (Zakat base) for Saudi/GCC-owned entities.,,
GOSI (Saudi Nationals)	11.75%	Employee's basic salary + housing allowance (capped at SAR 45,000).,
GOSI (Expatriates)	2%	Employee's basic salary + housing allowance (capped at SAR 45,000).,

Filing & Compliance

• Corporate Income Tax and Zakat returns are due within 120 days from the end of the financial year.,
• GOSI contributions must be paid monthly. Employers are required to register with GOSI and manage social insurance activities via an online portal.,,
• Withholding Tax payments are due by the 10th day of each month for the previous month's payments. Annual returns are due within 120 days following the financial year end.,

Employee Tax Deductions in Saudi Arabia (2025)

There are no income taxes on employee salaries earned within Saudi Arabia. However, Saudi employees contribute to social security and other programs.

Social Security Contributions

• Saudi nationals contribute 9% of their salary to social security.
• Employers contribute an additional 9% for a total of 18%.

Unemployment Insurance (SANED)

• Saudi nationals contribute 0.75% of their salary to the unemployment insurance program (SANED).
• Employers contribute an additional 0.75% for a total of 1.5%.

Occupational Hazard Insurance

• Employers contribute 2% of the employee's salary for occupational hazard insurance. This applies to Saudi nationals only.

Health Insurance

• Health insurance is mandatory in Saudi Arabia.
• Most employers provide health insurance as a benefit, with premium costs sometimes shared with the employee. Specific deduction amounts vary based on the insurance plan and the agreement between the employer and employee.

Other Deductions

• Other potential deductions may include employee contributions to retirement savings plans or other optional benefit schemes if offered by the employer.

General Information About Taxes in Saudi Arabia

While there is no personal income tax on employment income, businesses operating within Saudi Arabia are subject to corporate income tax. The corporate income tax rate is generally 20%. Additionally, there is a Value Added Tax (VAT) of 15% on most goods and services, which consumers ultimately bear. Zakat, a religious wealth tax, applies to Saudi and GCC nationals, affecting assets and investments rather than employment income. Withholding taxes apply to certain payments made to non-residents, such as dividends, interest, and royalties. The rates for withholding taxes vary depending on the nature of the payment. As of Today, February 5, 2025, this information is current, but tax laws are always subject to change, so staying updated is vital.