The taxing authority in Sa'udi Arabia is the Department of Zakat and Income Tax. During the early 1970s, a progressive income tax was levied on all personal income of foreign residents in excess of sr6,000, at the rate of 5–30%; there was also a progressive tax of 25–45% on the profits of foreign companies. These taxes were abolished in 1975; in January 1988, an attempt was made to revive them, but it was rescinded almost immediately after widespread complaint. However, foreign companies that have not obtained exemption under the Foreign Investment Code and foreigners who are self-employed professionals or general partners in Sa'udi partnerships are subject to these taxes.
Corporate taxes range from 25–45% of net income. The zakat is an Islamic tax derived from the Shari'ah and applied directly to the income and property of Saudis (and resident Gulf state nationals); half of the zakat rate of 2.5% is paid to the government, and the other half is distributed by citizens to the poor. The income of members of the royal family is tax-exempt.