On 15 September 2023, Saudi Arabia published Decision No. (25) of 8/01/1445H (26 July 2023) in the Official Gazette. The Decision came into force on the same date of its publication. One of the main changes of the Decision was decreasing the withholding tax rate on technical & consulting services.
According to the Decision, the previous 15% withholding tax rate applied to payments to related parties has now been decreased to 5% for transactions involving technical and consulting services, as well as international telecommunication services.
