Saudi Arabia: Foreign Investors: New Taxation System for Natural Gas
Article from: OGEL 2 (2004), in National and International Issues in Natural Gas Development
A unique feature of the Saudi Arabian Tax Law of 2004, which replaces the 50-year old Saudi tax laws, is that it has added a new set of special rules for taxation of foreign investors in the Natural Gas sector, obviously taking into account its relatively low cost of production here and the anticipated high profit levels compared to other industries. The income tax for all independent gas activities is set at a flat rate of 30 per cent, while all other gas-related activities are subject to an additional Natural Gas Investment Tax (NGIT). The new tax laws have been approved by the Cabinet, ...