Tax Rights
Zakat, income tax, VAT, withholding tax, transfer pricing, and tax dispute resolution under ZATCA regulations and Saudi tax law.
Zakat Obligations for Saudi-Owned Businesses
Saudi-owned businesses and GCC nationals pay Zakat instead of income tax:Rate: Zakat is levied at 2.5% of the company's Zakat base (net assets adjusted per ZATCA rules).Who pays: Saudi-owned companies...
Income Tax for Foreign Investors
Foreign investors and foreign-owned businesses in Saudi Arabia pay income tax instead of Zakat:Rate: Corporate income tax is 20% on net adjusted profits for non-Saudi/non-GCC shareholders.Oil and gas:...
VAT Registration & Compliance
Saudi Arabia charges Value Added Tax (VAT) at 15% on most goods and services:Mandatory registration: Businesses with annual taxable supplies exceeding SAR 375,000 must register for VAT.Voluntary regis...
Withholding Tax Rules
When Saudi-based companies pay certain amounts to non-residents, they must withhold tax at source:Management fees: 20% withholding tax.Royalties: 15% withholding tax.Rent and technical services: 5% wi...
Tax Audit Rights & ZATCA Procedures
If ZATCA audits your tax or Zakat returns, you have specific rights during the process:Notification: ZATCA must notify you in writing before beginning an audit.Scope: The audit must be related to spec...
Tax Refund & Offset Claims
If you have overpaid tax or have excess VAT input credits, you can claim a refund or offset:Income tax/Zakat refund: If ZATCA's final assessment is lower than what you paid, you can request a refund o...
Transfer Pricing Rules
Saudi Arabia requires transactions between related parties to be priced at arm's length:Arm's length principle: Transactions between related companies must be priced as if the parties were independent...
Tax Dispute Resolution & Appeals
If you disagree with a ZATCA tax or Zakat assessment, you have the right to dispute it:Internal objection: File an objection with ZATCA within 60 days of the assessment notice. You must pay the undisp...