Unlocking Tax Efficiency
& Structuring Compliance

Special Advisory Proposal for Stay Strong International Administrative Co.
Prepared for: Mr. Hossam Nabil Abdelqawy Abdelwahab, General Manager
Prepared by: GreenCPA — Arwa Alromaizan, SOCPA License #846
Date: 09 July 2026  |  Validity: 30 Days
Confidential Advisory Draft
Preliminary draft — finalized upon receipt of Stay Strong Egypt incorporation papers & KSA LLC audited financial statements.
Executive Summary

Three Critical Tax Gaps — Identified & Correctable

⚠
Gap 1

Disallowed Personnel Costs

Previous auditor added back all salary expenses — subjecting your entire payroll to 20% CIT.

The FixGOSI + WPS registration unlocks 100% salary deductibility.
⚠
Gap 2

Intercompany Transaction Risk

Unstructured Egypt → KSA invoicing is 100% disallowable under ZATCA Article 14(2), while still attracting 5–15% WHT.

The FixFormal SLAs + Transfer Pricing Local File.
ℹ
Gap 3 — Opportunity

Suboptimal CIT Structure

If the Egyptian parent has a Saudi ultimate beneficial owner (UBO), a portion may qualify for 2.5% Zakat vs. 20% CIT — pending UBO verification.

The FixZATCA Mixed Entity application (subject to UBO confirmation).
GreenCPA resolves all three gaps with a structured, audit-grade programme.
Preliminary draft — finalized upon receipt of Stay Strong Egypt incorporation papers & KSA LLC audited financial statements.
Entity Structure

Standalone Saudi LLC — A Structural Advantage

FactorForeign Branch (Old Assumption)Saudi LLC ✓ (Actual Status)
Legal identityExtension of Egypt HQSeparate Saudi legal entity
Intercompany invoicesNon-deductible (CIT Art. 14(2))Deductible ✓ (if arm's-length SLA)
Manager salary (Hossam Nabil)Non-deductibleFully deductible ✓ (via GOSI/WPS)
ZakatMay apply on Saudi-owned shareExempt (100% foreign-owned)
CIT rate20%20% on net profits
Transfer Pricing rulesN/AApply — SLA + Local File required
DTT (KSA–Egypt)LimitedFull treaty access ✓
Stay Strong LLC (Egypt)
↓100% shareholder · intercompany SLAs (arm's-length)
Stay Strong International Admin Co.
(KSA LLC — Jeddah)
↓GOSI + WPS
Employees / Expats / GM Hossam Nabil
CR 0000085853  |  Capital: SAR 100,000  |  Manager: Hossam Nabil Abdelqawy Abdelwahab
Preliminary draft — finalized upon receipt of Stay Strong Egypt incorporation papers & KSA LLC audited financial statements.
Gap 1 · Payroll

Payroll Deductibility — Turning a Loss into a Saving

✕ Current State — Disallowed
  • Cash-paid or Egypt-direct salaries
  • No GOSI registration
  • No WPS bank file
Result: ZATCA disallows ALL salary deductions → 20% CIT applied to full gross payroll.
✓ Corrected State — 100% Deductible
  • All staff registered in GOSI: Expats (incl. GM Hossam) 2% Occupational Hazard; Saudi nationals 21.5% (combined GOSI)
  • Salaries paid via local Jeddah bank WPS transfer
  • Employment contracts with defined basic + housing allowances
Every SAR 1,000 in deductible payroll = SAR 200 saved in CIT
Legal ReferenceArticle 17, Saudi Income Tax Law + GOSI/WPS Regulations
Penalty if IgnoredFull disallowance + 20% retrospective CIT + 1% per 30 days late payment
Preliminary draft — finalized upon receipt of Stay Strong Egypt incorporation papers & KSA LLC audited financial statements.
Gap 3 · Conditional Opportunity

UBO Look-Through — A Conditional Tax Saving Opportunity

⚠️ Subject to UBO verification — pending Egypt parent incorporation documents
  • Under Article 2(1)(b) of the Zakat Implementing Regulations 1445H, ZATCA looks through the corporate veil of a foreign parent to find the ultimate beneficial owners.
  • If any Saudi natural person or Saudi company is an indirect owner of Stay Strong KSA, that proportional share is eligible for 2.5% Zakat instead of 20% CIT.
87.5%
potential reduction on the Saudi-owned share
Action Required
Obtain & review the Egypt parent's incorporation documents to confirm UBO composition.

GreenCPA will: Compile Mixed Entity Application → Submit on ZATCA portal → Manage split Zakat/CIT calculations.
Stay Strong LLC (Egypt)
↓
Saudi KSA LLC
If Egyptian parent has Saudi UBO:
2.5%
Saudi UBO share → Zakat
20%
Non-Saudi share → CIT
This slide is conditional. GreenCPA will confirm applicability upon receipt of Egyptian incorporation documents.
Preliminary draft — finalized upon receipt of Stay Strong Egypt incorporation papers & KSA LLC audited financial statements.
Gap 2 · Intercompany

Intercompany Transactions — Protect Deductibility, Minimize WHT

WHT Rate Table — Egypt Parent → KSA LLC

Payment TypeDomesticKSA–Egypt DTTLegal Basis
Royalties (IP, brand, software)15%10%DTT Article 12
Technical / Consulting services5%0% (if no PE)DTT Article 7
Management fees15%15% (no reduction)CIT Art. 68 + Reg. 63
Dividends5%5%DTT Article 10
Penalty: Incorrect WHT: 1% of unpaid tax per 30 days + 50% penalty for incorrect CIT filings.

GreenCPA Actions

  1. Draft Intercompany SLAs (Cost-Plus / TNMM pricing method)
  2. Compile Transfer Pricing Local & Master File
  3. Obtain Tax Residency Certificate (TRC) from Egyptian Tax Authority
  4. Reclassify Management Fee flows to Consulting/Technical (0–5% vs 15%)
  5. File Controlled Transaction Disclosure forms annually
Preliminary draft — finalized upon receipt of Stay Strong Egypt incorporation papers & KSA LLC audited financial statements.
Scope of Services

Four Specialized Service Lines

SL 1

GOSI & WPS Payroll Alignment

  • Register GM Hossam Nabil + all staff in GOSI (2% expat / 21.5% Saudi)
  • Build WPS-compliant payroll register & bank file procedures
  • Draft KSA employment contracts (basic + housing allowance split)
DeliverableMonthly payroll compliance audits + gap analysis
SL 2

Intercompany SLAs & Transfer Pricing

  • Draft arm's-length Service Level Agreements with Egypt HQ
  • Compile Transfer Pricing Local/Master File
  • File Controlled Transaction Disclosure forms
DeliverableTP Local File + SLA templates + annual disclosure
SL 3

WHT & DTT Compliance

  • Map all outbound payments to Egypt parent
  • Secure Tax Residency Certificates (TRC) from Egyptian Tax Authority
  • Apply 10% DTT cap on royalties, 0% on qualifying consulting
DeliverableMonthly & annual WHT returns + TRC folder
SL 4

General Tax Compliance Retainer

  • Monthly VAT returns (15%) + input VAT quality gate
  • Annual 20% CIT return preparation + ZATCA filing
  • ZATCA audit defense & representation
Deliverable12 VAT returns + annual CIT + ZATCA representation
Preliminary draft — finalized upon receipt of Stay Strong Egypt incorporation papers & KSA LLC audited financial statements.
Engagement Options

Engagement Options — Choose Your Tier

Option 1

Essential Compliance Retainer

SAR 12,000 / month
+ SAR 25,000 one-time (annual CIT)
  • Monthly VAT return prep & filing
  • Monthly WHT returns
  • Annual CIT return
  • Basic ZATCA query support
★ Recommended
Option 2

Premium Compliance & Advisory

SAR 18,000 / month
CIT prep + GOSI-WPS audit included — no one-time fees
Everything in Option 1, plus:
  • GOSI-WPS Salary Deductibility Audit & alignment
  • Intercompany SLA restructuring & royalty review
  • Continuous tax helpdesk (15 hrs/month, SLA-backed)
  • ZATCA audit defense for current fiscal year
Option 3

Strategic Restructuring Project

SAR 65,000 one-time
3-month project · 40% signup / 40% draft / 20% sign-off
  • Full Transfer Pricing Local/Master File
  • Intercompany SLA drafting (arm's-length justification)
  • Comprehensive KSA–Egypt DTT relief applications
  • Structural payroll & GOSI setup
Options 2 & 3 can be combined. All fees exclusive of ZATCA filing fees and government charges.
Preliminary draft — finalized upon receipt of Stay Strong Egypt incorporation papers & KSA LLC audited financial statements.
Methodology & Next Steps

Our Commitment: Audit-Grade Delivery

Three Quality Gates

1 Input Validation

All GOSI/WPS files reconciled to the penny against bank statement outflows before any filing.

2 Treaty Proof

No DTT-reduced rates filed unless a valid, certified Tax Residency Certificate (TRC) is in hand.

3 Double Sign-Off

All deliverables require formal sign-off from Bookkeeping Lead (Mai) or CPA (Arwa) before client delivery.

Documents Needed to Finalize

  1. Stay Strong Egypt parent incorporation documents (for UBO analysis)
  2. Saudi LLC audited financial statements (FY2024 / FY2025)
  3. GOSI/WPS payroll register + bank statements
  4. Existing intercompany invoices / Egypt HQ contracts
  5. ZATCA portal access (read-only)
To proceed: Contact Arwa Alromaizan
arwa@greencpa.info  |  +966 541 705 513
GreenCPA — جرين للمحاسبة والمراجعة والاستشارات  |  SOCPA License #846
Preliminary draft — finalized upon receipt of Stay Strong Egypt incorporation papers & KSA LLC audited financial statements.