Why the RHQ program exists
Saudi Arabia wants global companies to base their Middle East leadership in the Kingdom. Since the rule took effect, an RHQ is required for multinationals to be eligible for Saudi government contracts.
The tax incentive
Qualifying RHQs receive 30 years of 0% corporate income tax on eligible income and 0% withholding tax on eligible payments — a significant benefit for regional operations.
The requirements
An RHQ must have a physical office in Saudi Arabia, qualified staff and genuine regional management activities (economic substance). ZATCA has published detailed guidelines on eligibility and substance.
How to set one up
Setup involves a MISA RHQ licence, incorporation, meeting substance requirements and ongoing compliance with ZATCA and Saudization. We manage the entire process.
Frequently asked questions
What does an RHQ get?
Eligibility for Saudi government contracts plus 30 years of 0% corporate income and withholding tax, subject to conditions.
What are the substance requirements?
A real office in the Kingdom, qualified employees and genuine regional management activities.
About the author
Omega Global Editorial · Editorial Team
Practitioners from Omega Global's Technology, Marketing, Finance and Construction practices, writing on doing business across Saudi Arabia, the UAE and Oman.