Saudi Arabia: No plans to impose an income tax on individuals
Saudi Arabia's Finance Minister, Mohammed Al-Jadaan, has affirmed that there are no plans to impose income tax on individuals in the country. In an interview during the 2024 World Economic Forum in Davos, Al-Jadaan clarified the nation's stance on income tax, emphasizing that Saudi Arabia is committed to its current taxation mechanisms.
The Saudi government's opposition to personal income taxes has been reaffirmed by Mohammed Al-Jadaan, minister of finance. During an interview at the 2024 World Economic Forum in Davos, Al-Jadaan made it clear that the Kingdom had no plans to implement an individual income tax.
As The present tax system in Saudi Arabia, he said, includes a value-added tax (VAT), income tax on businesses and foreign investors, and zakat on the general populace. He also confirmed that this framework will not be changed. In an effort to make the country more welcoming to businesses, Al-Jadaan highlighted the continuing efforts to reduce economic obstacles.
Regarding the diversification of the economy, Al-Jadaan brought attention to the strategic investments made by Saudi Arabia in areas like logistics, technology, and tourism. Major logistical initiatives, such as the construction of trains and airports, are underway across the country. Improvements to water treatment facilities are also in the works, so residents and citizens won't have to worry about a disruption in service. Seeking sufficient funding to ensure the effective implementation of renewable energy projects, the Minister of Finance further underscored the nation's dedication to these endeavors.
Within the framework of Saudi Arabia's fiscal policy, Al-Jadaan shed light on how the kingdom plans to use its $12 billion in bonds. According to his explanation, these monies would be used to cover the deficit, which amounts to about 2% of GDP for this year. The minister of finance also stressed the need to speed up expenditure on big projects. Regardless of these financial concerns, Al-Jadaan voiced confidence in the country's economic direction and good signs.
Saudi Arabia's dedication to upholding its taxing practices, along with ongoing efforts to diversify the economy and invest in crucial infrastructure, demonstrates a strategic approach to economic development and financial sustainability.