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What is the WHT rate on technical services provided outside Saudi Arabia to a Saudi resident entity? Is there a difference in the WHT rate in the case of a related or unrelated party relationship (shareholding) between the entities?

Tax Withholding Saudi Arabia
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Asheesh Bhandari
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.
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