Saudi Arabia to slash taxes on oil companies

Saudi Arabia: According to a news report in the Khaleej Times, Saudi Arabia has decreased the taxes imposed on oil companies in a bid to attract investments in its government-owned energy company, Aramco. The new tax regime is likely to be offered to investors in 2018, the report added.

The new taxes, the report said, will range from 50% to 85% depending on the firm’s investments, unlike the uniform tax of 85% that was previously imposed. According to the royal decree issued on March 27, companies that invest more than SAR 375 billion will come under the 50% tax bracket.

The report also mentioned that the Kingdom also “plans to sell five per cent of Aramco next year, as part of efforts to build up a large sovereign wealth fund. The sale falls within the kingdom’s strategy to diversify its oil-dependent economy away from hydrocarbons.”