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Are the capital gains from the disposal of securities traded in the Kingdom's financial market, including government securities (stocks and bonds) of incomes exempt from tax? What if the investor is a resident or non-resident? Will the legal form of the investee company be taken into account?

Capital gains from the disposal of securities, including government stocks and bonds specified in Article (2) of the Capital Market Law issued by Royal Decree No. M / 30 dated 02/06/1424 H will be exempted from tax under the provisions of Article Ten of the Income Tax Law when the controls and conditions stipulated in Article Seven of the Implementing Regulations of Income Tax Law are available only if the taxable investor is a resident. However, If the investor is a non-resident legal entity, it will be liable for income tax on the capital gains it earns from the sale of such investments based on paragraph 2 (b) of Article 1 of Implementing Regulations of Income Tax Law regardless of the legal form of the investee company in the financial market.