Saudi Tax Withholding Tax

May 8, 2016
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United Arab Emirates
We are a UAE based company who is doing work for a Saudi company. I need some clarification on the Tax Withholding for Saudi companies paying outside of Saudi (ie to the UAE) I am of the understanding that we have to do our invoices with Tax Withholding only if the work is relating directly to Saudi services, as we do other international work for this company too, or do all our invoices to them have to have tax withheld?

Example: We invoice for SAR 50,000 and then show the invoice of Tax Withheld (5%) less 2,500 meaning that the client will only pay us 47500.

How is this fair or are we supposed to show our invoices for 50000 + 2500 so that the client will actually pay us the contracted amounts?



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