Non-resident
In one sentenceA person or company not considered resident in the Kingdom for income tax purposes, whose income from sources within the Kingdom is usually taxed through withholding.
Simply put
If you pay a non-resident party for a service, royalty, or rent from a source in the Kingdom, you are usually required to withhold the tax and remit it.
If the non-resident has a branch or fixed office it operates from inside the Kingdom, it may be treated as a permanent establishment and file a return on its income.
Example
A private hospital contracted a consulting company outside the Kingdom to develop its systems remotely. The company is a non-resident, so the hospital withholds tax from every payment to it before transferring.
Don't confuse it with
Permanent establishmentA non-resident without a fixed place of business is subject to withholding; if it has a fixed place, it may become a permanent establishment.