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Saudi Aramco Tax Cut to Prepare Oil Producer for Giant IPO

  • Royal order lowers Aramco tax to 50 percent from 85 percent
  • Kingdom plans to sell shares in world’s largest oil exporter
Bloomberg business news

Tax Cut Frees Billions in Funds for Aramco

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Saudi Arabia slashed the tax rate paid by state oil producer Saudi Aramco, a key milestone in preparing the company for what may be the world’s biggest initial public offering.

Aramco’s income tax, paid on the company’s profit, is being cut to 50 percent from 85 percent, Chief Executive Officer Amin Nasser said in an emailed statement. The centerpiece of plans to overhaul the economy of the world’s largest oil exporter, Saudi Arabia aims to sell as much as 5 percent of the company late next year in an IPO that the kingdom estimates could value the business at about $2 trillion.