Payment of taxes to GAZT in Saudi Arabia
Payment of taxes to GAZT in Saudi Arabia: A taxpayer shall pay its due tax in accordance with its declaration within one hundred and twenty days from the end of its taxable year.
Advance Payments of Tax
(a) Without prejudice to paragraph (b) of this Article, a taxpayer who realizes income in the taxable year shall pay three advance payments of tax on or prior to the last day of the sixth, ninth and twelfth months of the taxable year. The amount of payment is the result of the following equation:
25% x (A – B)
where :
A = The taxpayer’s tax for the preceding year according to its declaration.
B = The amount of tax paid in the preceding year by withholding from the source in accordance with Article Sixty Eight of this Law.
A taxpayer shall not be obligated to make advance payments, if the result of the above equation is less than five hundred thousand (500,000) riyals.
The Department has the power to reduce any of the payments due under this Article if it is convinced that the taxpayer’s income for the taxable year, with the exception of the income of which tax is withheld from the source under Article Sixty Eight of this Law, shall be substantially less than the amount of income of the preceding year.
A payment made pursuant to this Article is considered a payment in advance against the taxpayer’s total tax for the taxable year for which the payment was made.
A taxpayer shall pay its due tax in accordance with its declaration within one hundred and twenty days from the end of its taxable year.
Advance Payments of Tax
A taxpayer who realizes income in the taxable year shall pay three advance payments of tax on or prior to the last day of the sixth, ninth and twelfth months of the taxable year. The amount of payment is the result of the following equation:
25% x (A – B)
where :
A = The taxpayer’s tax for the preceding year according to its declaration.
B = The amount of tax paid in the preceding year by withholding from the source in accordance with Article Sixty Eight of this Law.
The advance payment of the tax will be made in three equal payments of tax on the last day of the sixth, ninth and twelfth months of the tax year.
Late payment of an advance payment is subject to a delay penalty of 1 percent of payment amount for every 30 days of delay.
A taxpayer shall not be obligated to make advance payments, if the result of the above equation is less than five hundred thousand (500,000) riyals.
The Department has the power to reduce any of the payments due under this Article if it is convinced that the taxpayer’s income for the taxable year, with the exception of the income of which tax is withheld from the source under Article Sixty Eight of this Law, shall be substantially less than the amount of income of the preceding year.
A payment made pursuant to this Article is considered a payment in advance against the taxpayer’s total tax for the taxable year for which the payment was made.
Read more blogs here and for information on ZATCA click here.
For more training courses on Tax/ VAT click here and following are other taxation related training programs for Saudi Arabia: –
- VAT Fraud Training in Saudi Arabia
- VAT Training in Saudi Arabia
- Advanced Tax Fraud Investigation Training in Saudi Arabia
- Zakat and Tax Training in Saudi Arabia
