RHQ Programme: Tax Perks and How to Qualify

Multinational groups looking to base a regional management hub in Saudi Arabia can access a package of long-term incentives through the Regional Headquarters (RHQ) programme. The scheme targets non-profit-seeking hubs that oversee a group's operations in at least two countries outside Saudi Arabia and the parent company's home country.

The headline benefit is tax relief. Eligible RHQ income is exempt from corporate income tax at a 0% rate for 30 years from the date the licence is granted, subject to meeting substance conditions. A matching 0% withholding tax for 30 years applies to qualifying payments to non-residents, including dividends and service-related payments to related and unrelated parties.

Beyond tax, the programme offers a 10-year Saudization (Nitaqat) exemption for RHQ employees, expanded professional visa quotas with fast-track processing, and priority to participate in government tendering and public procurement. Employees in certain professions are exempt from professional accreditation requirements, and up to three executives and their families can obtain premium residency, with the dependent age limit extended to 25 years.

How to qualify

At group level, the foreign head office must have subsidiaries or branches in at least two jurisdictions other than Saudi Arabia and its own country of residence. The RHQ must act as an administrative and strategic hub for regional operations — focusing on management, planning, support and coordination rather than direct commercial trading.

The RHQ must be set up in Saudi Arabia as either a limited liability company or a branch of the foreign company, with a dedicated RHQ licence from وزارة الاستثمار, separate from any other commercial licence. A physical office suitable for the intended activities is required. Tax and zakat registration is handled automatically once the RHQ licence is obtained, provided this happens before the end of the RHQ's first fiscal year. The company must also carry out the mandatory activities defined by the ministry, such as regional business planning and budgeting, alongside concierge and facilitation support during setup and operations.

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