Saudi Arabia

Valuation, IFRS and growth advisory in Saudi Arabia

We support Saudi businesses, financing companies and foreign investors with valuations, IFRS implementation, Zakat and VAT compliance and market-entry planning, in step with a fast-changing economy.

• VAT in Saudi Arabia is charged at a standard rate of 15%, administered by ZATCA.
• Zakat is levied on the Saudi and GCC-owned share of a company; income tax at 20% applies to the share owned by non-GCC foreign investors.
• Electronic invoicing (FATOORA) is mandatory and is being extended to taxpayers in phased waves.
• Foreign investors generally need a Ministry of Investment (MISA) licence before commercial registration.

What is the difference between Zakat and income tax in Saudi Arabia?

Zakat applies to the portion of a business owned by Saudi and GCC nationals and is calculated on the Zakat base. Corporate income tax at 20% applies to the portion owned by non-GCC investors. A mixed-ownership company can be subject to both.

Do you build IFRS 9 ECL models for Saudi lenders?

Yes. We build expected credit loss models for SME financing companies and funds, covering staging, probability of default, loss given default, exposure at default and forward-looking macroeconomic scenarios, documented so auditors can follow every step.