Saudi Arabia vs Kuwait: construction business compared

The biggest differences: VAT 15% in Saudi Arabia vs None in Kuwait; Corporate income tax 20% in Saudi Arabia vs 15% in Kuwait; Performance bond 5% in Saudi Arabia vs 10% in Kuwait.

Side by side

Item	Saudi Arabia	Kuwait
Tax for Contractors
VAT	15%	None
Corporate income tax	20%	15%
Withholding on contractor payments	15%	0%
Zakat on companies	Yes	Yes
Tax authority	Zakat, Tax and Customs Authority (ZATCA)	Ministry of Finance — Tax Administration
Payroll & Social Insurance
Employer — national	11.75%	11.5%
Employee — national	9.75%	10.5%
Employer — non-national	2%	0%
Employee — non-national	0%	0%
Wage protection	WPS	Wage Protection System
Government Tenders
E-procurement platform	Etimad	CAPT e-portal
Bid bond	1% – 2%	—
Performance bond	5%	10%
Retention	10%	10%
Registering a Contracting Company
Commercial registry	Ministry of Commerce — Commercial Register	Ministry of Commerce and Industry — Commercial Registry & licence
Online registration portal	Ministry of Commerce e-services	Ministry of Commerce and Industry
Chamber membership required	—	—
Contractor Classification
Required for government work	Yes	Yes
Classification authority	Contractor Classification Agency — Ministry of Municipalities and Housing (via Balady)	Central Agency for Public Tenders (CAPT) — contractor classification
Currency & Exchange Rate
Official currency	SAR	KWD
Alternative currencies in use	None	None

— no documented figure in the sources, or set by each tender or contract. Withholding falls on payments to non-residents in most countries and on every contractor payment in a few — see each country’s tax page.