ZATCA emphasised that any delay in submission will result in a 1 per cent fine on the unpaid tax for every 30 days of delay beyond the due date.
Withholding tax in Saudi Arabia
Withholding tax applies to all payments made from sources within the Kingdom to non-resident entities that do not maintain a permanent establishment in Saudi Arabia.
The tax is applied in accordance with the rates specified in Article 68 of the Income Tax Law and Article 63 of its Implementing Regulations.
Businesses can file their withholding tax returns and seek assistance through several channels, including:
ZATCA reiterated that compliance with these provisions ensures alignment with the Kingdom’s taxation framework and helps avoid financial penalties.
