Declaration and Return Filling with GAZT in Saudi Arabia

Declaration and Return Filling with GAZT in Saudi Arabia: Every taxpayer required to file a declaration shall file it in the prescribed form, include its identification number, and pay the due tax thereon to the Department.

The tax declaration shall be filed within one hundred and twenty days following the end of the taxable year for which the declaration was made.

The following taxpayers shall be required to file a tax declaration:

1.A resident capital company.

2.A nonresident with a permanent establishment in the Kingdom.

3.A resident, non-Saudi natural person who conducts business.

A taxpayer who ceases business activity is required to notify the Department and to present, within sixty days from the cessation date, a tax declaration for the short taxable period ending with the date on which it ceases business.

A taxpayer whose taxable income exceeds one million (1,000,000) Saudi riyals, shall have a certified accountant licensed to practice in the Kingdom certify the correctness of the declaration especially in the following cases:

a) The return information is extracted from and in conformity with the taxpayer’s books and records.

b) The return is in compliance with the provisions of the Saudi Arabian Income Tax Law.

The Department issues the necessary tax declaration (return) forms along with explanatory schedule forms to be attached with the declaration to enable taxpayers to comply with filing obligations. The taxpayer should use the prescribed forms, and may use computer-generated forms if identical to the approved ones.

The taxpayer should file the return and attachments within the legally prescribed period. The taxpayer should state all income realized during the return period. The return is considered filed at the date of the official receipt by the Department or by any authorized agency. If the last date for filing ends during an official holiday, the return may be filed with payment accordingly on the first working day after the official holiday.

The burden of proof for correctness of a tax return, income, expenses and other data, rests with the taxpayer. If a taxpayer fails to prove its claims, the Department may, in addition to other legal sanctions, disallow a deduction or make an estimated assessment based on its opinion, relevant circumstances and facts and available information.

In case of activity cessation, the return should be filed and payment accordingly be made within 60 days of the date of cessation.

A partnership must file an information return within 60 days of the end of its fiscal year. A partnership with (a) limited partner (s) must file a return of tax payable by the share of limited partner (s) according to provisions applicable to capital companies.

A person assigned to be responsible for liquidation of a company, of inheritance or bankruptcy must inform the Department in writing of commencement of liquidation procedures and must file tax returns within legally prescribed times through liquidation process. He must also provide the Department with a copy of final financial statements (liquidation final accounts) and pay tax payable to the Department within 60 days of liquidation process completion; failure to do so will make that person jointly liable with the taxpayer in case of proven availability of money but there was failure to make such payment.

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