Income tax does not apply.

No taxation at grant, purchase or sale.

Allowed, provided the awards granted in accordance with (i) the employee’s contracts of employment with the local entity and (ii) the local entity’s internal employment policies are approved by the Saudi Arabian Ministry of Human Resources and Social Development.

Income Tax:
N/A

Social Insurance Contribution:
Pursuant to unofficial guidance, ESPP income is not wages for social insurance purposes.

For grants on or after 1 April 2018, companies granting awards to employees are required to make quarterly filings with the Capital Markets Authority ("CMA") for the quarters in which any activity related to awards occurs (e.g., grants are made).

Please contact Baker McKenzie for more information.

None.

Payroll deductions under ESPP may be problematic under the Ministry of Labor and Social Development's "wage protection" system.

Generally, no, provided ESPP is not mentioned in the employment contract but employee should be required to acknowledge discretionary nature of plan.

A new data privacy law was adopted on 23 March 2022 and entered into force on 14 September 2023 (with a one-year grace period to comply).