Development Zones
The ministry regulates the work of development zones throughout the Kingdom. They are dedicated to various fields of business and industry and are equipped with the investor's needs of infrastructure and services. These areas are managed by development companies that work to develop the infrastructure and facilitate the work of investors. Development zones aim to distribute the gains from economic development and create job opportunities by creating a competitive advantage based on specialization and providing an integrated system of services to investors that support the growth and development of enterprises.
DEVELOPMENT ZONES ADVANTAGES
The general sales tax provided for under the General Sales Tax Law on commodities and services which the registered enterprise purchases or imports for the purposes of exercising its economic activity within the development areas shall be reduced to (zero) percent.
The forklifts and vehicles prepared for transport of ten persons and more including the driver and sold to the registered enterprise for the purpose of transporting workers from and to the Enterprise’s facilities in the development or free zones shall be exempted from sales tax.
The registered enterprises which exercise economic activity in the development zone shall enjoy exemption of materials, equipment, machines, supplies, and building materials used in building, constructing, preparing and furnishing all types of projects established by the enterprises in the development zone, including spare parts required for continued maintenance thereof , and goods imported into the development zone for carrying on the economic activity or exported there from outside the Kingdom from customs duties excluding export fees , service fees and payable wages according to the legislations in force .
The commodities and services originated in the development zone and sold to the rest of the Kingdom’s areas shall be subject to the general sales tax.
Foreign investors can own up to 100%
Income tax on the institutions registered in developmental zones
The tax on the enterprise registered in the developmental zones arising from the activities of the licensed manufacturing industries in these zones where the local added value is not less than (30%) is at the rate of (5%).
Income tax shall be at a rate of (10%) of the taxable income of the registered enterprises in the development zone for the rest of its activities and projects.