‏Headline: Are You Paying 20% Corporate Income Tax? Here’s How To Switch To 2.5% Zakat Leg

‏Hello,
‏I am a Saudi Engineer, offering a strategic business solution for foreign business owners residing in the Kingdom who are currently operating under foreign commercial registrations.

‏The Hidden Cost of Operating as a Foreign Entity:
‏Most expat business owners don't realize that owning a 100% foreign company in Saudi subjects you to Corporate Income Tax (CIT). However, if you outsource your operations to a local Saudi entity (mine), you fall under the Zakat regime. The financial impact is massive:

‏Aspect Your Foreign Company My Saudi Company (The Solution)
‏Taxation System Corporate Income Tax (CIT) Zakat (Islamic wealth tax)
‏Applicable Rate 20% of net profits 2.5% of the Zakat base
‏Calculation Basis Only on net taxable income On the Zakat base (Assets - Current Liabilities)
‏Mixed Ownership Foreign share is taxed at 20% Saudi share is taxed at 2.5%

‏In simple numbers: The 20% you pay on your profits today is reduced to just 2.5% when working through my entity.

‏Additional Cost Breakdown (Non-Tax Differences):

‏Cost Item Your Foreign Company My Saudi Company
‏Withholding Tax (WHT) 5% – 20% on payments to non-residents Not applicable (treated as local transactions)
‏Annual Commercial License Fees High (previously up to SAR 10,000+) Minimal government fees
‏Expat Dependent Fees Up to SAR 9,600/year per expat employee Significantly reduced or exempt based on activity
‏Saudization (Nitaqat) Ratios Strict mandatory rates (e.g., 20% for Engineering, 25% for Construction) I manage the entire Nitaqat profile on your behalf

‏My Transparent Financial Offer:
‏✅ I charge only 5% of the total value of every invoice issued for your work.
‏✅ This fee covers: Complete document management, official invoicing (FATOORA), government portal follow-ups, and the calculation/deposit of Zakat and VAT due to ZATCA.
‏✅ Zero hidden fees – no annual retainers or surprise charges.

‏Bonus Service (Free Strategic Consulting):
‏As a Saudi Engineer deeply familiar with the local market, I will act as your business partner. I will help you develop and expand your projects, network with government entities, and secure local contracts under the umbrella of a trusted national partner.

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‏📢 For Referral Partners (Marketing Commission):
‏Do you know foreign business owners in Saudi? If you refer them to me and they sign up, you will receive a 5% commission on the total value of their first 3 invoices issued through my company. A thank you for your trust and network.
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