The WHT on technical services paid to a Saudi resident would vary between 0% and 30% depending on the country where the services are rendered and the kind of services rendered. The higher tax rate could be reduced if there is a tax treaty and conditions in that treaty are satisfied.

Usually the WHT does not change for payments by a related party although under transfer pricing rules the payer may not be allowed a full deduction for technical services paid to a group company if the tax authorities consider the payment to be excessive. In some jurisdictions, the transfer pricing rules allow the excess portion of to be recategorized as a dividend distribution which may result in a higher WHT.