Analysis of the Application of Income Tax Law to Income Generated Overseas by Capital Companies Located in the Kingdom of Saudi Arabia

This study analyzed the scope of imposing income taxes on the income generated from the local and foreign operations of capital companies located in the Kingdom of Saudi Arabia (KSA) and the challenges accompanying the new amendment to the tax laws and their possible improvements. The amendment in the executive regulation of the income tax law stipulates that the resident money company is subject to the tax on its income inside and outside the Kingdom, but it is silent about individuals, which may create challenges. By conducting a comparative analysis of the tax laws of KSA and the United States of America, the study proposed suggestions through which the KSA can develop a more robust legal environment in the field of taxation pertaining to income tax law