Corporate tax, zakat and VAT in Saudi Arabia: a company guide

Understanding tax compliance in Saudi Arabia is essential for any company. The Zakat, Tax and Customs Authority (ZATCA) oversees this area — here are its key components.

Zakat and income tax

Companies owned by Saudis and GCC nationals are subject to zakat, while foreign-ownership shares are subject to corporate income tax. Treatment depends on the ownership structure.

Value Added Tax (VAT)

VAT applies to most goods and services; establishments exceeding the registration threshold must register and file periodic returns.

E-invoicing (Fatoora)

ZATCA requires establishments to issue invoices electronically and integrate with its systems — compliance is essential to avoid penalties.

Deadlines and penalties

Late filing or payment exposes the establishment to penalties. Periodic follow-up and meeting deadlines protect your business.

How we help

We provide accounting and tax-compliance services through accredited partner firms, coordinating and following up on your behalf. Book a consultation.