Article 6: Tax Base

(a)    The tax base of a resident capital company is the shares of non-Saudi partners in its taxable income from any activity from sources within the Kingdom minus expenses permitted under this Law.

(b)    The tax base of a resident non-Saudi natural person is his taxable income from any activity from sources within the Kingdom minus expenses permitted under this Law.

(c)    The tax base of a non-resident who performs an activity within the Kingdom through a permanent establishment is his taxable income arising from or related to the activity of such establishment minus expenses permitted under this Law.

(d)     The tax base of each natural person is determined separately.

(e)    The tax base of a capital company is determined separately of its shareholders or partners.

Article 7: Tax Rates

(a)   The tax rate of the tax base is twenty percent (20%) for each of the following:

(1)    A resident capital company.

(2)    A non-Saudi resident natural person who conducts business.

(3)    A nonresident person who conducts business in the Kingdom through a permanent establishment.

(b)   The tax rate of the tax base for a taxpayer engaged only in natural gas investment activities is thirty percent (30%).

(c)    The tax rate of the tax base for a taxpayer engaged in the production of oil and hydrocarbon materials is eighty five percent (85%).

(d)   Withholding tax rates are those specified under Article Sixty Eight of this Law.