Bid & Tender
Saudi Arabia Sets Tax Rates on Oil Producers

Date : Apr 05, 2017

Saudi Arabia has set a range of income tax rates for producers of oil and hydrocarbons, said a royal decree.

 

The tax rate for investments exceeding 375 billion riyals ($100 billion) will be 50 percent. It gave other rates for producers with smaller investments.

 

The announcement was directly related to national oil giant Saudi Aramco. Saudi authorities plan to sell shares in Aramco next year and have been considering whether to cut the effective tax rate on the company in order to facilitate the sale.

 

Aramco currently pays a 20 percent royalty and 85 percent tax to the government, Saudi officials have said.