DoubleTaxationTaxes on salary: Saudi Arabia preliminary data
How much income tax and social contributions are paid on a salary in Saudi Arabia, what a sole proprietor and a company pay, and which special regimes exist. Preliminary data.
Preliminary data: headline rates from official sources and bulletins of international organisations, without reliefs or special rules; being refined.
Calculation for a gross salary of €60,000 per year
| Gross salary | SAR 263,723 ≈ €60,000 |
|---|---|
| Take-home pay | SAR 263,723 ≈ €60,000 |
| Employer contributions and payroll taxes | SAR 5,274 ≈ €1,200 |
| Employer's labour cost | SAR 268,997 ≈ €61,200 |
Only some of the country's direct taxes and levies are counted: income tax on wages and compulsory contributions. Not counted: property and real-estate taxes; taxes on dividends, interest and other investment income; inheritance and gift taxes; indirect taxes such as VAT, excise and customs duties.
Taxes for sole proprietors and companies
Tax and contributions on the profit for a year; expenses are 10% of revenue, the company pays its profit out to the owner. Reliefs and local taxes are not included.
| Annual revenue | €30,000 SAR 131,861 | €60,000 SAR 263,723 | €120,000 SAR 527,445 |
|---|---|---|---|
| Sole proprietor | SAR 0 0.0 % | SAR 0 0.0 % | SAR 0 0.0 % |
| Company | SAR 23,735 20.0 % | SAR 47,470 20.0 % | SAR 94,940 20.0 % |
Special tax regimes
There are no special regimes for individuals.
Tax residence
The tax residence check does not cover Saudi Arabia yet.
Assumptions
- Calculated with the OECD Taxing Wages methodology: income tax including local taxes plus employee social security; single person without children, tax year 2026, ECB rate of 2 January 2026.
- Exchange rate: 1 EUR = 4.395375 SAR (Saudi Central Bank (SAMA) — fixed peg SAR 3.75 = USD 1, 2026-01-02) ↗
Sources
- ZATCA — Income Tax Law page (Royal Decree M/1 of 15/1/1425 H)
- ZATCA — Implementing Regulations of the Income Tax Law (Arabic, amended to 1440 H)
- Zakat, Tax and Customs Academy (gstc.gov.sa) — Explanatory guide to the Income Tax Law and its regulations (Arabic, to 24/4/1444 H): art. 7 rates
- US SSA — Social Security Programs Throughout the World: Asia and the Pacific 2018, Saudi Arabia
- Saudi Central Bank (SAMA)
Data checked: 2026-11-08. An indicative calculation for a typical case. Not tax advice.