Foreign-owned companies face discriminatory tax regime. While non-Saudi business entities are subject to income tax at 20% in general, Saudi entities are subject to Zakat, a levy of 2.5% applicable on the higher of the adjustable taxable profit or the zakat base comprising of equity, loans and provisions reduced by deductible investments and fixed assets. For the purposes of the OECD FDIRRI, while this measures does not constitute a restriction on profit repatriation, it affects foreign-owned companies after-tax profits available for repatriation and is, therefore, recorded as a restriction for its discriminatory nature, regardless of whether the tax regime puts or not foreign investors at disadvanatage vis-à-vis Saudi-investors.
"FISCAL REGIME: ELEMENTS RELEVANT FOR FOREIGN INVESTMENT
Four main fiscal regime elements are particularly relevant for foreign investment
- Corporate income tax, applicable on foreign ownership of Saudi Arabiabased company; with statutory corporate rate set at 20%, it is the lowest among the G20
- Zakat, applicable on local ownership of Saudi Arabiabased company; set at 2.5% of the Zakat base
- Value-Added-Tax
- Social Security contribution; only for Saudi personnel. [...]" (Invest Saudi (2019), Investor Guide, Saudi General Investment Authority). 
Invest Saudi (2019), Investor Guide, Saudi General Investment Authority.
[<a href="https://www.investsaudi.sa/en/investor/guide">Guide</a>],[<a href="https://kpmg.com/sa/en/home/services/tax/tax-tools-and-resources/tax-rates-online/corporate-tax-rates-table.html#:~:text=As%20from%2001%20January%202018,the%20combined%20tax%20rate%2029.58%25.">Other</a>],[<a href="https://www2.deloitte.com/content/dam/Deloitte/xe/Documents/tax/tax-handbook-2018.pdf">Other</a>]