Riyadh, Aug 2: A Shoura Council member has called for a 20 percent tax on Saudi investments abroad, as is the case with foreign investments in the Kingdom, local media reported.
The proposed tax will generate billions of riyals in state income and contribute to the national economy by offsetting the exit of Saudi capital investments, Fahd bin Jumaa, deputy chairman of the Financial Committee at the Shoura Council, told Al-Hayat daily.
Based on the latest data released by the Arab Investment and Export Credit Guarantee Corp. (Dhaman), direct Saudi investments in foreign countries amounted to nearly SR155.3 billion ($41.4 billion) between 2003 and 2015, he said.
There were 526 Saudi projects abroad owned by 240 companies in more than 30 foreign and Arab countries, creating more than 96,000 jobs, he said, adding that this was a loss to the Saudi economy.
Tax evasion could be avoided by signing tax-evasion agreements with countries, and the proposal will help achieve the objectives of Vision 2030, he said.
According to UN Conference on Trade and Development estimates, the cost of Saudi foreign direct investment projects is close to SR155.25 billion.
China, Turkey, the UAE, Jordan, South Korea, Egypt, Lebanon, South Africa, Pakistan and the US are reportedly on the list of countries with Saudi investments.
The Saudi Basic Industries Corp. (SABIC) topped the list of Saudi companies investing abroad, implementing 81 projects with investments estimated at SR37.5 billion.
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