MoF has initiated a consultation on Regional Headquarters (RHQ) rules set to run from 9 September-9 October, 2025.
The Saudi Ministry of Finance (MoF) launched a public consultation on 9 September 2025 regarding draft rules for licensing and supervising regional headquarters (RHQs) of multinational companies.
The draft complements the Regional Headquarters regime approved at the end of 2023, which offers a 0% corporate income tax rate and a 0% withholding tax rate on dividends and other payments for 30 years, starting from the RHQ license issuance, with possible renewal.
The draft establishes a regulatory framework for licensing, regulating, and supervision of the activities of regional headquarters and the incentives granted to them, in order to achieve legislative clarity for international companies wishing to open their regional headquarters in Saudi Arabia.
It also clarifies the concept of regional headquarters activities, the mandatory and optional activities of regional headquarters, the relationship between the regional headquarters and affiliated companies in the Middle East and North Africa region. It serves as a reference for interpreting and guiding the rules and regulations related to this activity, achieving a balance between the requirements of investment empowerment and regulatory sovereignty.
The consultation is set to conclude on 9 October 2025.