This ZATCA General Guideline for Withholding Tax (Second Version, May 2026) explains how Tax Withholding applies under the Income Tax Law and its Implementing Regulations. It identifies the person obligated to withhold, covering resident natural and legal persons, government bodies and Permanent Establishments of non-residents, and the payments made to a non-resident from a source in the Kingdom under Articles 5 and 68. It sets out withholding rates of 5%, 15% and 20%, the exemption for dividends of natural gas, oil and hydrocarbon companies, monthly and annual withholding statements, record keeping, delay and fraud penalties, and the distinction between royalties, knowledge transfer and services.
General Guideline for Withholding Tax In accordance with the provisions of the Income Tax Law and its Implementing Regulations
Withholding Tax
Second Version | May 2026
Contents
Definitions of Key Terms in this Guideline
1. Introduction
1.1. What is Tax Withholding?
1.1.1. Relationship between Income Tax and Tax Withholding
1.1.2. Tax Withholding
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