This Circular clarifies the application of withholding tax on payments by resident entities to non-resident telecommunication companies, pursuant to Article 68 of the KSA Income Tax Law. It confirms that payments for international phone/telex services, use of satellite bandwidth, and leasing capacities in international cables are subject to a 5% withholding tax as they are considered sourced within the Kingdom. However, it explicitly exempts payments for international roaming services. The exemption is based on the determination that the service is wholly performed outside Saudi Arabia, with the local provider acting merely as a billing intermediary.