Saudi Arabia Launches four special economic zones (SEZ)

On 13 April 2023, the Government of Saudi Arabia announced the launch of four special economic zones (SEZs) across the country with incentives for international companies to operate within the Kingdom. The new SEZs are spread strategically across the country: King Abdullah Economic City (KAEC) – West, Jazan – Southwest, Ras Al Khair – Northeast , Cloud Computing in King Abdulaziz City for Science and Technology (KACT) – Central (Riyadh) They aim to offer competitive incentives including: 5% Corporate Income Tax rate for up to 20 years; 0% withholding tax on repatriation of profits from SEZ into foreign countries; Customs duties deferral for goods inside SEZ or 0% Custom duties on capital equipment and inputs inside SEZ; Flexible and supportive regulations around foreign talent during first 5 years; 0% VAT for all intra-SEZ goods exchanged within and between the SEZs; Special tax treatment in line with OECD principles to avoid double taxation; Competitive rate of utilities notably electricity; Exemption from operational fees for employees and their families within SEZ. _{source untcad}