One of the first questions every founder asks: do I pay Zakat, or corporate tax? The answer depends on ownership.
How the split works
Zakat applies to the share of the business owned by Saudi and GCC nationals. Corporate income tax applies to the share owned by foreign investors. A wholly foreign-owned company files corporate tax; a wholly Saudi-owned one files Zakat; a mixed entity files both, apportioned by ownership.
Both are administered by ZATCA. Getting the apportionment and filings right from the first cycle keeps you clean and avoids reassessment later.