Withholding Tax

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Withholding Tax Filing Services in Saudi Arabia

In Saudi Arabia, certain payments are subject to withholding tax. This rule applies when your company pays a foreign (non-Saudi) business or individual for services. You must keep a part of the payment as tax and send it to ZATCA (the Saudi tax authority). This helps ZATCA collect tax from people or companies that earn money from Saudi Arabia but are not based in the country. For example, if you hire a foreign consultant, your company withholds the tax and pays it for them. Every month, you must file a WHT (withholding tax) return. The law says the file must be filed within 10 days after the month ends. If you file late, the tax office charges penalties (about 1% extra per month of delay and even bigger fines for big mistakes).

Eighty20 Business and Financial Solutions helps you with all this. Our withholding tax filing services explain the rules in simple terms and do the work for you. We keep track of deadlines, calculate the right tax, and submit your returns on time. This way, you avoid fines and focus on your business.

What is Withholding Tax?

Withholding tax (WHT) in Saudi Arabia is a direct tax that must be deducted at source when a Saudi-based payer (resident or permanent establishment) makes certain payments to non-resident individuals or companies.

For example:

You get a $10,000 invoice against services from a foreign IT expert.
You hold back $500 (5%) for tax.
You send $9,500 to them and $500 to ZATCA.

You must file a report (called a WHT return) and send the money within 10 days after the end of the month.

If you’re late or make mistakes, you may get fines!

What Can Be Taxed?

Royalties and related parties services 15%
Technical and consulting 5%
Interest and dividend 5%
Management fee 20%
Rent or equipment use – depends

Our withholding tax filing Saudi Arabia service matches each payment to the correct tax rule.

What Happens If You File Late?

If you file your tax late or pay after the deadline, ZATCA adds a 1% penalty each month until you pay everything you owe. Big mistakes, like hiding payments or giving false details, can lead to fines of up to 25% of the unpaid tax. Even small errors can cause problems if they seem dishonest. Keeping poor records, such as missing invoices or contracts, can also lead to tax audits and more stress. When records are missing, ZATCA might not accept your report or could ask for more tax. These issues can cost you time and money. Filing on time and keeping clear records helps your business stay safe and worry-free.

Our Withholding Tax (WHT) Filing KSA Services Include

At Eighty20 Business and Financial Solutions, we handle everything. Our team makes WHT filing Saudi Arabia easy and correct. The withholding tax filing Services that we offer are as follows:

Accurate Calculation

We find the right withholding tax rate for each payment. (For example, management fees are usually 20%, royalties 15%, and interest or dividends 5%.) We double-check the math so you pay exactly what is due, no more and no less.

Timely Filing

Our withholding tax filing services prepare and submit your monthly WHT returns on time. We pay the tax within 10 days after the month-end. This ensures you meet the legal deadline and avoid late penalties.

Complete Documentation

We gather and review all needed papers – invoices, contracts, payment records, and tax certificates. Organized paperwork means smooth filings and ready records in case of an audit.

Expert Advice

We check if your payments can use tax treaties or other rules to pay less tax. Our withholding tax filing service Saudi Arabia guides you on refunds if too much tax was withheld. Our team is ready to answer your questions.

Audit Support

If the tax office asks questions, we support you with clear records and answers. We help prepare for any WHT audit so you stay compliant.

Industries We Serve

We have helped clients in:

Tech
Logistics
Construction
Oil & Gas
Healthcare

Every industry has its own rules, and we know them all.

How We Stay Ahead of the Curve

Here’s why hundreds of businesses trust our withholding tax filing Saudi Arabia service:

Expert Team

Our Saudi tax experts stay up-to-date on the latest rules. This means we know exactly how withholding tax works in Saudi Arabia.

Accuracy

We double-check all filings for correctness. We ensure the right rates are used and the calculations are correct, so there are no surprises later.

Speed

We work quickly to meet every deadline. With Eighty20 Business and Financial Solutions, your returns are done well before they are due.

Hassle-Free Service

We handle all forms and communication with ZATCA. You won’t have to log into the tax portal or chase documents – we do it for you.

FAQ's

Who must file WHT returns?

Any Saudi entity that pays a non-resident for services. In other words, if your business makes a payment to a foreign contractor or consultant for work done, you must file. The resident payer (your company) is responsible.

When do I file?

You file every month. Each return must be submitted within 10 days of the month after you made the payment. For example, for payments made in June, file by July 10.

What payments are taxed?

Common payments include consulting or technical service fees, management fees, royalties, rent, dividends, and interest paid to non-residents. Different types have different rates (5%, 15%, or 20%). We make sure to apply the correct rate to each payment.

What if I file late or report incorrectly?

Penalties apply. The tax authority charges about 1% of the withheld tax for each month you are late. If you under-withhold, there is also a 1% penalty for each month of underpayment. In severe cases (like false information), fines can be as high as 25%. That’s why timely and accurate filing is so important.

How do I get help?

Just contact us! We’ll set up a free consultation to discuss your needs. Our team will explain the next steps, answer your questions, and get started on your WHT filings right away.

How can I avoid late filing penalties?

Send your documents to Eighty20 Business and Financial Solutions before the due date. We prepare and file everything on time so you never miss a deadline.

What if ZATCA withholding tax KSA finds an error in my filing?

Our experts check every report before it is submitted. If an issue comes up, we fix it right away and guide you through any correction process.

Can your company handle all communication with ZATCA for me?

Yes. Our withholding tax filing services will take care of all filings, updates, and follow-ups directly with ZATCA so you can focus on running your business.

What is a ZATCA WHT return and when do I need to submit it?

It is a monthly report you send to ZATCA that shows all payments you made to non-residents and the tax you withheld. You must submit it by the 10th of every month. If you miss the deadline, ZATCA adds penalties, so it is important to file on time.

What documents do I need for my ZATCA WHT return?

You need invoices, contracts, payment details, and proof of any tax treaty rates you used. When you work with Eighty20, you just send these to us, and we prepare the full return for you.

How do I stay compliant when paying a non-resident in Saudi Arabia?

Every time you pay a non-resident for a service, you must check the correct WHT rate, withhold the tax, and report it to ZATCA. Eighty20 confirms the right rate, calculates everything, and files the return so you stay safe.

No more missed deadlines or surprise fines.

Talk to Eighty20 Business and Financial Solutions today and keep your business compliant with confidence.

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