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Is the Withholding Tax levied on the net profit/dividends distributed to a non-resident partner after deducting the tax due by the company on this person’s share in the profits or is it determined according to the total amounts distributed, including the taxes due?

The withholding tax is levied on the net profits of the non-resident partner after deducting the tax due by the resident company on this partner’s share of the profits. For example, If the share of the non-resident partner in the total profits realized after the reserves are SR 1,000,000, the income tax due on the Company is at 20% of this person’s share and worth SR 200,000, therefore the withholding tax is levied on the distributable net profit to the non-resident partner which is SR 800,000.