Withholding Tax Filing

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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 requires the return to be filed within 10 days after the month ends. If you file late, penalties apply, including around 1% per month of delay and higher fines for serious errors.

Eighty20 Business and Financial Solutions helps you manage all of this. Our withholding tax filing services simplify the process, handle calculations, track deadlines, and submit returns on time so you stay compliant and avoid penalties.

What Is Withholding Tax?

Withholding tax (WHT) in Saudi Arabia is a tax deducted at source when a Saudi-based company or permanent establishment makes payments to a non-resident individual or company.

For example:

You receive a $10,000 invoice for services from a foreign IT consultant
You withhold $500 (5%) as tax
You pay $9,500 to the consultant
You pay $500 to ZATCA

The WHT return must be filed and the tax paid within 10 days after the end of the month.

If you miss deadlines or make mistakes, penalties may apply.

Payments That May Be Taxed

Technical and consulting services – 5%
Royalties and intellectual property – 15%
Interest and dividends – 5%
Management fees – 20%
Rent or equipment usage – rate depends on classification

Our withholding tax filing services in Saudi Arabia ensure every payment is matched with the correct tax treatment.

What Happens If You File Late?

Late or incorrect filings can lead to:

1% monthly penalty on unpaid tax
Higher fines (up to 25%) for serious errors or misreporting
Audits triggered by missing or incomplete records
Additional tax assessments if documents are not sufficient

Even small errors can create compliance risks if ZATCA considers them inconsistent. Proper filing and recordkeeping reduce these risks significantly.

Our Withholding Tax Filing Services in Saudi Arabia

At Eighty20 Business and Financial Solutions, we manage the full WHT process from start to finish.

Accurate Calculation
We identify the correct withholding tax rate for each transaction and ensure accurate calculations so you only pay what is required.

Timely Filing
We prepare and submit monthly withholding tax returns on time and ensure payment is made within the legal deadline.

Complete Documentation
We organize invoices, contracts, and payment records to ensure full compliance and audit readiness.

Expert Advice
We review transactions for tax treaty benefits and provide guidance on reducing tax exposure where legally possible.

Audit Support
If ZATCA requests clarification, we assist with documentation and responses to ensure smooth handling of audits or queries.

Industries We Serve

We support businesses across multiple sectors, including:

Technology
Logistics
Construction
Oil and Gas
Healthcare

Each industry has different payment structures, and we tailor our approach accordingly.

Why Businesses Trust Our Services

Expert Team
Our tax specialists stay updated with ZATCA rules and regulatory changes.

Accuracy
We double-check all calculations and filings to ensure correctness and compliance.

Speed
We meet all deadlines efficiently, ensuring filings are completed ahead of schedule.

Hassle-Free Process
We handle everything directly with ZATCA, so you don’t have to manage the tax portal or paperwork.

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.

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