Do residents pay tax on dividends in Saudi Arabia?

No. Saudi Arabia has no personal income tax, so a resident individual keeps the full gross dividend with nothing withheld. There is no dividend allowance to track because the rate is already zero.

What withholding tax applies to non-residents?

Dividends paid from a Saudi company to a non-resident shareholder are subject to a 5% withholding tax, deducted at source and remitted to ZATCA. This is the statutory rate before any treaty relief.

Is there a difference between qualified and ordinary dividends?

No. Saudi Arabia does not split dividends into qualified and ordinary categories the way some countries do. A resident pays nothing and a non-resident faces the single withholding rate, so the calculation is straightforward.

Are my numbers private?

Yes. The whole calculation runs in your browser. Nothing you enter is uploaded or stored anywhere.

Saudi Arabia Dividend Tax Calculator

Q: Can a tax treaty reduce the 5%?

Yes. Saudi Arabia has double-tax treaties with many countries that can reduce the dividend withholding rate, sometimes to zero for qualifying corporate shareholders. Use the rate override to model your treaty rate, then confirm eligibility with an adviser.

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This Saudi Arabia dividend tax calculator turns a gross dividend into the net amount you actually keep. For resident individuals that is the full amount, because the Kingdom has no personal income tax; for non-residents it applies the 5% withholding tax, with room to drop in a lower treaty rate.

How it works

Saudi Arabia levies no personal income tax, so a resident individual receives dividends gross — the rate is 0% and the net equals the gross.

For a non-resident shareholder, the company deducts a 5% withholding tax at source and pays it to ZATCA, the tax authority. A double-tax treaty between Saudi Arabia and the shareholder’s country can reduce that rate, sometimes to zero for qualifying corporate holders, so the tool lets you override the 5% with your treaty rate.

The maths is simply:

tax = gross × rate
net = gross − tax

with rate = 0% for residents and rate = 5% (or the treaty rate) for non-residents.

Example

A resident investor receiving SAR 100,000 in dividends from a Tadawul-listed company keeps the full SAR 100,000 — no deduction. A non-resident receiving the same dividend has SAR 5,000 withheld at the 5% statutory rate, leaving SAR 95,000; if a treaty cut the rate to 0%, they too would keep the full amount.

Notes

This is an estimate. The actual outcome depends on your residency status, the specific treaty, and whether you qualify for the reduced rate. Withholding is administered by ZATCA — confirm the precise rate and any refund procedure with a Saudi tax adviser.