Saudi Arabia slashes tax rates on Aramco, sets income tax rates for other producers

Saudi Arabia issued a royal decree slashing taxes payable by Aramco to 50% from 85%, Bloomberg reports. Aramco currently pays a 20% royalty on its revenue and an 85% tax on income. “The royal decree falls in line with an earlier promise that Saudi Arabia will reduce the overall tax rate paid by its national oil company to make its 2018 initial public offering … more appealing to investors,” economic research director at the Gulf Research Center Foundation, John Sfakianakis. Saudi Arabia also set a range of income tax rates for producers of oil and hydrocarbons, according to Reuters.