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May 15, 2026

This Article establishes the criteria for determining tax residency in the Kingdom of Saudi Arabia for a taxable year. For a natural person, residency is confirmed if they have a permanent residence in the Kingdom and are present for at least 30 days, or if they are present for a total of 183 days or more. For companies, residency is established if the entity is formed under the Companies Law or if its central management is located in the Kingdom. A related resolution defines 'principal place of management' as requiring at least two conditions, such as board meetings or key executive decisions occurring within the Kingdom.

Chapter 2 - Taxpayers

Article 3 - Concept of Residency

A natural person shall be considered a resident in the Kingdom for a taxable year if he meets any of the two following conditions:
1. He has a permanent place of residence in the Kingdom and resides in the Kingdom for a total period of not less than 30 days in the taxable year.
2. He resides in the Kingdom for a period of not less than 183 days in the taxable year.
For the purposes of this paragraph, residence in the Kingdom for part of a day shall be considered residence for a whole day, except in case of a person in transit between two points outside the Kingdom.
A company shall be considered a resident in the Kingdom during the taxable year if it meets any of the following conditions:
1. It is formed in accordance with the Companies Law.
2. Its central management is located in the Kingdom.