If I work for a foreign company with a Saudi office, does that office create a tax liability for the company?

Yes, it very likely does. Under Article 4 of the Saudi Income Tax Law, a permanent establishment (PE) is defined as a permanent place through which a nonresident carries out business in the Kingdom. This can include a branch, office, factory, workshop, or even a construction site that meets a certain duration threshold.

If a foreign company has an office in Saudi Arabia — even if it is primarily used to support employees like you — that office may constitute a permanent establishment. Once a PE exists, the nonresident company becomes subject to Saudi income tax at the 20% rate (per Article 7) on the income attributable to that establishment and sourced from the Kingdom, as described in Article 5.

From a practical standpoint, if you are an expat working for a foreign employer that has a Saudi office, your employer should already be registered with ZATCA and filing tax returns for its Saudi PE. If the company is not compliant, it faces legal and financial exposure. As an employee, your personal salary is generally not subject to Saudi income tax, but you should confirm your employer's compliance status. Seeking advice from a local tax advisor or lawyer is recommended if there is any ambiguity.