How does Saudi Arabia determine if I am a tax resident as an expat?

Under Article 3 of the Saudi Income Tax Law, a natural person is considered a tax resident in Saudi Arabia for a taxable year if they meet either of two conditions: (1) they have a permanent place of residence in the Kingdom and actually reside there during the tax year, or (2) they are physically present in the Kingdom for a sufficient period under the residency threshold defined in the law (typically 183 days in a 12-month period).

For most expats on a standard work visa (iqama), having a permanent place of residence — such as a rented apartment or company-provided accommodation registered in your name — combined with actual presence in the Kingdom will generally make you a tax resident. This is significant because resident non-Saudi individuals who conduct business are subject to Saudi income tax on their business income.

It is worth noting that Saudi Arabia does not currently impose personal income tax on employment salaries for expats. Tax residency becomes most relevant if you also operate a business, have investment income, or are a partner in a company. If you are uncertain about your residency status, consulting a ZATCA-registered tax advisor is strongly recommended.