Issued by the Zakat, Tax and Customs Authority (ZATCA), these rules establish the tax framework for Regional Headquarters (RHQs) in Saudi Arabia, implementing Royal Decree No. M/62. The decision provides significant tax incentives, notably a zero percent (0%) income tax on eligible income and a zero percent (0%) withholding tax on specific payments to non-residents, valid for thirty years. To qualify, RHQs must adhere to strict Economic Substance Requirements outlined in Article 5, including maintaining a physical presence, managing activities from the Kingdom, and incurring adequate operational expenditure. The rules also detail compliance obligations and anti-avoidance measures.