I have started up a business for distribution of UK products to Saudi Arabia and I need advice about the taxation, especially as some payments will be offshore.
Can I ask if you could supply more details please. Is your company registered in the UK, or have you a business also registered in the Gulf?
What are your products – electronic, textiles, foodstuffs?
The processes, tax and duties can differ according to your requirement, as indeed the corporate structure you could put in place to make it function most effectively.
Can you let me know further information.
Kindly provide details of the transaction and we can assist you in the said matter. Kindly contact us at email@example.com
Payments for services by a Saudi entity to a company not registered in Saudi will be liable for Saudi taxes. This is usually done by the Saudi entity withholding 5 to 15% of payments and advancing this payment to the tax authorities. The % depends on what kind of services, to whom, and the relationship between the parties.
If you prefer that your invoices be paid in full, make sure that your contracts with the Saudi entities always mention that all taxes due are on the account of the client.
Omar M. AlHoshan
AlHoshan Certified Public Accountants & Consultants
Riyadh, Saudi Arabia
Tel: +966 1 4649166