Corporate Tax Assessment Services in Saudi Arabia

Eighty20 Business and Financial Solutions supports companies in Saudi Arabia with corporate tax matters and ensures full compliance with local tax laws. Under Saudi regulations, companies with foreign ownership are generally subject to Corporate Income Tax (CIT) at 20% of taxable profit.

If a company is fully or partially owned by Saudi or other GCC nationals, the Saudi or GCC portion is subject to Zakat at 2.5%. All these rules are regulated and enforced by ZATCA (Zakat, Tax and Customs Authority). We explain everything in clear language and handle the technical details on your behalf.

What is Corporate Tax in KSA?

Corporate tax applies to the profit a company earns from its business activities. For example, if a foreign-owned company earns 100 riyals in profit, it pays 20 riyals as CIT. If the same profit relates to the Saudi-owned portion, 2.5 riyals would be paid as Zakat.

Saudi tax law defines who pays CIT and who pays Zakat. We make these rules simple and clear:

• Who Pays CIT or Zakat: Foreign ownership is taxed at 20%. Saudi or GCC ownership is subject to 2.5% Zakat.

• Taxable Profit: Taxable profit is calculated by subtracting allowable business expenses, such as salaries and rent, from total income, then applying the relevant tax rate.

• Following the Law: We ensure your business complies fully with Saudi tax regulations so you pay only what is legally required.

How Corporate Tax Assessment in Saudi Arabia Is Calculated and Paid

To calculate Corporate Income Tax in Saudi Arabia, a company must determine its taxable profit according to Saudi tax regulations and apply the 20% rate. Accurate financial records of income and expenses are essential to support the calculation.

A corporate tax return must be filed annually with ZATCA within 120 days after the end of the financial year. For example, if the financial year ends on 31 December, the return must be filed by 30 April of the following year.

• Tax Return Deadline: Filing is required within 120 days of year-end.

• Advance Payments: Companies may be required to make advance tax payments during the year under ZATCA rules.

• Documentation: Larger companies, particularly those with Saudi ownership, must include audited financial statements when filing.

• Payment: Tax must be paid by the deadline. In some cases, installment arrangements may be allowed.

Missing deadlines can lead to serious penalties. ZATCA may impose fines ranging from 5% to 25% of unpaid tax, plus monthly penalties on overdue amounts. Our corporate tax assessment services ensure you file accurately and on time to avoid unnecessary costs.

Corporate Tax Compliance in Saudi Arabia

Tax compliance means following all applicable Saudi tax regulations correctly and consistently. ZATCA has the authority to audit company records. Eighty20 Business and Financial Solutions supports you through every stage of corporate tax compliance in Saudi Arabia:

• Record Keeping: Maintain invoices, receipts, and accounting records for at least six years.

• E-Invoicing Rules: Follow ZATCA’s digital invoicing requirements where applicable.

• Accurate Filing: Prepare and submit complete and correct tax returns on time.

• Avoiding Fines: Incorrect or incomplete filings may result in significant penalties, including fines on underpaid tax.

• Staying Updated: We monitor regulatory updates and keep you informed about changes in laws and deadlines.

With our guidance, you avoid common errors and remain confident in your compliance position.

Why Corporate Tax Assessment Is Important

A corporate tax assessment works like a financial health check for your business. It identifies risks, ensures accurate calculations, and supports better tax planning. Our tax assessment services in KSA include:

• Ownership Review: Determining whether CIT or Zakat applies based on ownership structure.

• Profit Calculation: Calculating taxable profit and applying the correct rate.

• Deductions and Credits: Identifying allowable deductions and available tax credits.

• Deadline Management: Preparing and filing returns within the 120-day deadline.

• Tax Planning: Advising on lawful strategies to optimize future tax positions.

Proper assessment prevents overpayment, avoids underpayment penalties, and provides clarity for decision-making.

Our Corporate Tax Assessment Services

Our team combines technical knowledge with a practical approach. We focus on clarity, accuracy, and long-term compliance. Our services include:

• Tax Review and Calculation: Reviewing financial records, identifying taxable income, and applying the appropriate tax rate.

• Filing Assistance: Preparing and submitting corporate tax returns to ZATCA within the required timeframe.

• Compliance Review: Evaluating internal processes to ensure alignment with tax regulations.

• Audit Support: Assisting with documentation and responses if ZATCA conducts an audit.

• Ongoing Advisory: Providing updates on regulatory changes and reminding you of key deadlines.

We guide you step by step and explain each stage in straightforward language.

The System That Keeps Your Taxes on Track

Working with us means partnering with a team that understands both Saudi tax regulations and business realities. Many companies rely on our corporate tax assessment services in Saudi Arabia because we focus on accuracy and reliability.

• Expert Knowledge: We stay updated on Saudi tax laws and ZATCA regulations.

• Comprehensive Service: We handle calculations, filings, compliance checks, and follow-ups.

• Time Efficiency: You focus on growing your business while we manage the tax details.

• Clear Communication: We explain tax matters in a simple and practical way.

Our goal is to provide peace of mind. We help you meet all legal requirements while identifying opportunities to manage your tax position effectively and responsibly.