GTL Summary:

Article 34 establishes the rules for estimated taxation for branches of specific foreign companies that do not provide adequate proof of their tax base. It stipulates that for foreign airlines operating in the Kingdom, the tax base is determined to be 5% of their gross income from tickets, cargo, mail, or other local sources. Similarly, for foreign sea, land freight, and transportation companies, the tax base is also considered 5% of their gross income from freight charges or other revenues realised in the Kingdom. The Article grants the Minister the power to authorise other sectors to use estimated taxation.

Document Type: Tax Law Article
Law: Income Tax Law (Royal Decree No M/1 - 21 Feb 2004)
Article Number: 34
Country: 🇸🇦 KSA
Location: Chapter 7 - Additional Rules for Determining the Tax Base
Order: 34
Last updated at: 2025-12-19 09:23:03 UTC

Chapter 7 - Additional Rules for Determining the Tax Base

Article 34 - Estimated Tax

  1. If branches of foreign airlines and sea or land freight and transportation companies operating in the Kingdom do not submit proof of their tax base in accordance with this Law, such tax base shall be determined as follows:

    1. The tax base for branches of foreign airlines operating in the Kingdom shall be considered 5% of the gross income realized in the Kingdom from tickets, cargo, mail, or any other income. Such branches shall declare their gross income in the Kingdom at the times specified by Law.

    2. The tax base for foreign freight and land and sea transportation companies operating in the Kingdom shall be considered 5% of the gross income realized in the Kingdom from freight charges or any other income. Such branches shall be required to declare their income in the Kingdom at the times specified by Law.

  2. The Minister shall have the power to authorize certain other sectors to use estimated taxation to determine their tax base and rates in accordance with the Regulations.

←
Previous
Article 33 - Recoup of Deducted Expenses
Next
Article 35 - International Agreements
→
Fast-loading version for search engines - Click here for the interactive version