U.S. Warns Saudi Arabia Its Tax Regime May Drive Firms Away (1)

The U.S. has criticized Saudi Arabia’s tax authorities and warned that disputes with foreign companies risk discouraging investment in the country.

“Numerous multinational enterprises” operating in Saudi Arabia “have experienced tax issues exhibiting a lack of transparency, consistency and due process compared to what they have come to expect from other nations,” the U.S. embassy in Riyadh said in a letter to the Saudi Ministry of Investment.

It wasn’t clear when the letter was sent but some ministry officials received it in recent days, according to people familiar with the matter. The embassy declined to comment, and the ministry ...