The corporate tax system was introduced in Saudi Arabia by Zakat, Tax and Customs Authority (ZATCA) with the intention of charging tax on the profits earned by companies. While individuals are absolved from the income tax scheme, investors are strictly subject to Saudi Arabia corporate tax of 20% on the net adjusted profits. Further, 2.5% Zakat is levied on the company’s Zakat base, the net worth calculated for Zakat purposes. However, certain businesses in Saudi are subject to different corporate rates such as oil and hydrocarbon production and natural gas business.