Taxation in
Saudi Arabia
Saudi Arabia’s tax environment is evolving rapidly with increasing focus on transparency, compliance, and digitalization. Whether you’re a local entrepreneur or a foreign investor, ZABS Legal offers professional tax services tailored to Saudi tax laws. From Zakat and Corporate Tax to VAT and E-Invoicing (FATOORA), we ensure full compliance with the Zakat, Tax and Customs Authority (ZATCA).
Features
At ZABS Legal, our dedicated team provides expert tax solutions to ensure compliance with UAE tax regulations while maximizing deductions. Our key features include:
Process and Duration
The duration for tax filing and compliance in the Saudi Arabia can vary based on several factors, including your business structure, tax obligations, and filing requirements. However, here’s a general timeline:
Step 1: Tax Consultation & Evaluation
We review your business model, ownership structure, and income to determine applicable taxes and compliance requirements.
Step 2: Tax Registration & Filing
We handle registration with ZATCA, prepare Zakat, Corporate Tax, VAT, and Withholding Tax filings, and ensure timely submissions.
Step 3: Year-Round Tax Support & Optimization
Receive ongoing assistance with tax planning, financial reporting, and E-Invoicing system integration as per ZATCA regulations.
Requirements
For Companies (LLCs, Foreign Entities, Branches):
- Commercial Registration (CR)
- MISA License (if foreign-owned)
- Articles of Association
- Bank IBAN & Company Address
- Previous Tax Filings (if applicable)
- Shareholder/Owner IDs or Passport Copies
For VAT & E-Invoicing:
- Sales Invoices & Expense Records
- Financial Statements
- ERP/System Access (for integration)
- VAT Certificate (if registered)
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What taxes apply to businesses in Saudi Arabia?
Zakat (2.5% of base): For 100% Saudi/GCC-owned businesses
Corporate Income Tax (20%): For non-GCC foreign-owned shares
VAT (15%): Standard rate on goods and services
Withholding Tax: 5%–20% on certain foreign payments
Do I need to register for VAT in Saudi Arabia?
Yes, if your annual turnover exceeds SAR 375,000. Voluntary registration is allowed from SAR 187,500.
What is e-invoicing and who must comply?
E-invoicing (FATOORA) is mandatory for most B2B and B2C entities in Saudi Arabia. It involves digital invoice generation and integration with ZATCA’s system. Phase 2 applies to medium and large businesses.
What happens if I miss tax filing deadlines?
Delays in tax filings can lead to significant fines and interest charges. We help manage deadlines, file extensions, and minimize penalties.
Are foreign-owned businesses taxed differently?
Yes. Foreign ownership is subject to Corporate Tax, while Saudi/GCC ownership is subject to Zakat. Mixed-ownership companies are taxed proportionally.
How can ZABS Legal support my company?
We handle everything from tax registration and filing to audit support, advisory, and ZATCA communication. Our team ensures you’re always compliant and tax-efficient.