Under the new measures, withholding tax exemptions will apply on interest derived from interbank deposits and paid to a non-resident bank in cases where those deposits are received for up to 90 days.

An annual statement certified by the Saudi Arabian Monitory Agency should be submitted to the resident borrower bank and should list the identity of the correspondent foreign banks, their addresses, loan maturity period and the interest amount paid.

Interest paid to the head office of foreign banks by their Saudi branches will also be considered as allowable expenses for income tax purposes.

In terms of transfer pricing rules, the new measures indicate the rules to determine the arm's length value will be released by the Department of Zakat and Income Tax.

When computing the taxable profits of Saudi branches of foreign airlines, land and maritime freight companies, the tax will be estimated at a lump sum value of 5% of the total turnover carried out through business operations in Saudi Arabia.