As {News-2017-03-29/A/5- previously reported}, Saudi Arabia has cut the corporate tax for upstream oil and gas producers from 85% to 50%, primarily for the benefit of Saudi oil giant Aramco. The reduction is effected through Royal Decree No. A/135 of 22 March 2017, which provides for a reduction in the rate based on the amount of capital investment:
- less than SAR 225 billion - 85% (no reduction)
- between SAR 225 billion and 300 billion - 75%
- between SAR 300 billion and 375 billion - 65%
- more …