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May 15, 2026

This ZATCA guide clarifies the Zakat, tax, and customs regulations for entities established in the KSA Special Integrated Logistics Zone. It details significant tax incentives, including a zero percent (0%) corporate income tax on eligible income and exemptions from withholding tax on specific payments to non-residents for up to 50 years. The guide explains the suspension of VAT and customs duties for goods related to licensed activities within the zone. Furthermore, it outlines procedural obligations such as separate entity registration, specific tax return filing for eligible and ineligible income, transfer pricing compliance, and detailed record-keeping requirements.

General Guideline
For Zakat, Tax and Customs Regulations on the Special Integrated Logistics Zone

First Edition | 10 December 2023

1. Introduction

2. Definitions of Key Terms

3. Overview of the Special Integrated Logistics Zone

3.1. Activities Allowed in the Zone

4. Tax incentives for Established Entities in the Zone

4.1. Income Tax
4.2. Withholding Tax
4.3. Suspension of Value-Added Tax (VAT) and Customs Duties
4.4. Zakat and other Taxes

5. Transactions between established entities in the zone, the mainland and anti-tax avoidance provisions

6. Tax Procedures

6.1. Registration
6.2. Tax/Zakat base and Submission of Returns and Payment of Tax/Zakat

6.2.1. Corporate Income Tax
6.2.2. Value-Added Tax (VAT)
6.2.3. Submitting Zakat Returns and Paying Zakat
6.2.4. Transfer Pricing

6.3. Refund of Value-Added Tax (VAT) and Customs Duties

6.3.1. Value-Added Tax (VAT)
6.3.2. Customs Duties

6.4. Record keeping and maintenance requirements
6.5. Tax and customs assessment, examination, and objection procedures

6.5.1. Tax and customs assessment and examination
6.5.2. Objection procedures

6.6. Penalties for non-compliance

The Zakat, Tax and Customs Authority ("ZATCA", "Authority") has issued this Guide for the purpose of clarifying certain tax treatments concerning the implementation of the statutory provisions in force as of the Guide's issue date. The content of this Guide shall not be considered as an amendment to any of the provisions of the Laws and Regulations applicable in the Kingdom.

Furthermore, the Authority would like to highlight that the clarifications and indicative tax treatments prescribed in this Guide, where applicable, shall be implemented by the Authority in light of the relevant statutory texts. Where any clarification, interpretation or content provided in this Guide is modified - in relation to unchanged statutory text - the updated indicative tax treatment shall then be applicable prospectively, in respect of transactions made after the publication date of the updated version of the Guide on the Authority's website.

Introduction

The Zakat, Tax and Customs Authority (the Authority) has prepared this guideline to provide the necessary clarifications and guidance for the application of the tax and customs provisions of the Special Integrated Logistics Zone «the Zone».

This guideline attempts to minimize any uncertainty or ambiguity that may arise for anyone conducting economic activity in the zone. It provides details and controls for tax and customs treatment in compliance with the zone's tax and customs laws and regulations.

Contents

Introduction