Zakat, tax, or both
Business Tax & Zakat Registration in Saudi Arabia
Saudi Arabia applies zakat and corporate income tax differently depending on who owns the company. Mixed ownership means both, apportioned.
GCC business setup specialists
Ownership decides which regime you are in
Broadly, Saudi and GCC ownership attracts zakat, foreign ownership attracts corporate income tax, and a mixed shareholding is apportioned between them. Getting that split wrong at registration propagates into every subsequent filing.
- Regime confirmed from your actual shareholding
- Withholding tax handled on payments abroad
- Filings prepared from books we maintain
20+
Mainland, free zone and offshore jurisdictions we file in — so the recommendation is based on your activity, not on which authority we happen to be registered with.
7,000+
Companies successfully established.
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What applies
Registrations and filings
Which of these apply turns on ownership, activity and payments made abroad.
| Obligation | Who it affects | What we do |
|---|---|---|
| ZATCA registration | Saudi companies generally | Register you and keep the credentials on file |
| Zakat | Saudi and GCC-owned shareholding | Prepare the zakat base and the return from your records |
| Corporate income tax | Foreign-owned shareholding | Prepare the computation and the return |
| Mixed ownership | Companies with both | Apportion correctly between the two regimes |
| Withholding tax | Companies paying non-residents | Identify payments in scope, withhold and file |
| Record keeping | All companies | Maintain records in the form and for the period required |
Rates, bases, deadlines and withholding categories are set by ZATCA and change. Your position is confirmed against current rules in writing before anything is filed.
How it works
From registration to filed return
The ownership analysis comes first because everything else follows from it.
01
Establish the regime
Shareholding analysed to determine zakat, income tax or an apportionment, and whether withholding tax will arise on your payment patterns. You get that in writing.
02
Register and set up
ZATCA registration completed and record-keeping set up so the base or computation can be produced from the books when due.
03
File and support
Returns prepared, explained before submission, filed, and supporting records retained in case the position is examined.
To assess your position
What we need to see
Ownership detail matters more here than in most markets.
- Commercial Registration and investment licence
- Articles of Association showing shareholding
- Nationality of every shareholder, to ultimate owners
- ZATCA registration details, if already registered
- Financial statements for prior periods
- Current management accounts
- Payments made to non-residents
- Related-party and group transactions
- Loan and financing arrangements
- Any permanent establishment questions
- Prior ZATCA correspondence
- Bank statements for all accounts
Scope
What is included, and what is not
Stated plainly, so nothing is added once the engagement starts.
Included in the service fee
- Ownership analysis and regime determination
- ZATCA registration
- Zakat base or tax computation
- Return preparation and filing
- Withholding tax identification and filing
- Record-keeping set up to support filings
- Deadline tracking
- A named adviser who explains the position
Not included, quoted separately
- Government and filing fees
- Penalties arising before our engagement
- Statutory audit
- Transfer pricing studies
- Advisory on complex restructuring
- Representation in a ZATCA audit, quoted separately
- Filings outside Saudi Arabia
- Backlog bookkeeping, quoted separately
Verify independently
Official Saudi authorities
We file directly with these bodies on your behalf.
Ministry of Investment (MISA)Ministry of CommerceSaudi Business CenterZakat, Tax and Customs Authority (ZATCA)Ministry of Human Resources & Social DevelopmentGeneral Organization for Social Insurance (GOSI)
Questions
Saudi zakat and tax — FAQs
Do I pay zakat or corporate income tax?
Broadly, Saudi and GCC ownership attracts zakat and foreign ownership attracts corporate income tax. A mixed shareholding is apportioned. We determine it from your actual shareholding rather than assuming.
What are the current rates?
Rates and bases are set by ZATCA and have changed over time. We confirm the figures applying to your period at the time of filing rather than quoting numbers that may have moved.
What is withholding tax?
Certain payments to non-residents require tax to be withheld and remitted. The categories and rates differ, and it is one of the most commonly missed obligations by new entrants.
Does a loss-making company still file?
Yes. Registration and filing obligations apply regardless of whether an amount is ultimately payable.
What if I am already late?
Late registration and filing carry penalties that accumulate. The position is usually recoverable, and far better addressed now than at the next deadline.
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