Oil companies in Saudi Arabia have been given a tax cut of 35 per cent following a royal decree issued by King Salam Bin Abdulaziz, the local WAS news agency reported yesterday.
The new taxes are based on the size of the firms' income.
Saudi's largest oil company Aramco said the decision "supports Aramco's contribution to economic diversity and development in the Kingdom in accordance with Saudi Vision 2030."
Based on the decree, firms with a total capital investment of 375 billion Saudi riyals ($100 billion) would be taxed at 50 per cent.
While those with total capital investments of between 300-375 billion Saudi riyals ($80-$100 billion) would be taxed at 65 per cent.
Companies with total capital investments ranging from 225-300 billion Saudi riyals ($60-$80 billion) would be taxed at 75 per cent, while those will lower total capital investments would pay 85 per cent tax.