Saudi Arabia will reimpose income taxes on...

Saudi Arabia will reimpose income taxes on foreign companies and workers by Jan. 21, according to a royal decree, thereby ending a 12-year suspension of the levy in the face of a continuing weak oil market and a projected $10-billion deficit. The move follows last week’s announcement that the kingdom would borrow money by issuing bonds for the first time since the oil boom of the late 1970s. Nearly all of the 30,000 Americans working in the kingdom will pay the top rate of 30%, although many have contracts that call for employers to alleviate their tax burdens. Foreign companies with gross profits above $266,000 will pay 45%. Saudi citizens and companies pay only the Moslem alms known as zakat, about 2.5% of income. The government also said it was raising minimum customs duties to 12% from 7%.