Saudi Arabian government issued a royal decree to decrease the income tax paid by Saudi Aramco from 85% to be 50% in order to facilitate the company’s initial public shares offering (IPO) that will be processed in 2018, reported Reuters.
Moreover, Arab Finance stated that according to the royal decree the new tax will be implemented at 50% for taxpayers owning a total capital investment that exceeds $99.9b. Meanwhile, the tax will be calculated as 65% for taxpayers with Total capital investments exceeding $79.9b to $99.9b.
Furthermore, payers with total investments between $59.9b to $79.9b will have tax estimated at 75%. Additionally, the tax will be
85% for taxpayers with total capital investments not more than $59.9b.
In addition, Saudi Ministry of Energy, Industry and Mineral Resources was reported by Saudi media to praise the royal decree to decrease the taxes implemented on the oil and hydrocarbon production companies operating in the kingdom.
The ministry stated that the royal decree is a positive step towards the kingdom’s plans towards the diversification of the sources of income.