Saudis announce new tax rate for Aramco amid plans for IPO
RIYADH, Saudi Arabia — Saudi Arabia on Monday reduced the tax rate for Saudi Aramco as plans move forward to publicly list shares of the state-owned oil giant.
The new code, rolled out by royal decree from King Salman, taxes Aramco at 50 per cent on income retroactively starting Jan. 1.
Aramco CEO Amin Nasser thanked the king in a statement for the decree reducing the company’s tax rate from what he said was 85 per cent, and said it “will bring Saudi Aramco in line with international benchmarks.”
The company’s oil production is Saudi Arabia’s main source of revenue and its finances are not publicly disclosed. The government is embarking on an overhaul of its economy to move away from heavy reliance on oil, its main export, after a sharp drop in prices.