Riyadh, August 5, 2019
The General Authority for Zakat and Tax (GAZT) has invited all entities subject to withholding tax to file a tax return for July before the end of August 10 at GAZT.GOV.SA
Withholding tax is defined as a specific percentage of income earned by a non-resident establishment in Saudi Arabia, providing services within Saudi Arabia and generating sources of income.
At the same time, non-resident establishments in Saudi Arabia will be subject to withholding tax for any amount obtained from any source in the Kingdom whether they deal with governmental, non-governmental, or semi-governmental establishments. The tax will be deducted from the total amount.
According to the Implementing Regulations of the Income Tax Law, the tax will be deducted from the total amount paid to the non-resident according to the percentages stipulated in Article 63 of the Income Tax Law published in the GAZT's website. The monthly tax return will also be filled in as per the form prepared during the first ten days of the following month. The entity must keep records proving its compliance with the withholding provisions provided that they have at least the name and address of their beneficiaries, the type of payment, the amount and the amount deducted in addition to any supporting documents for at least ten years after payment.
GAZT has confirmed that the person who files withholding tax is the establishment residing in Saudi Arabia through its account on GAZT's website.
GAZT also affirmed that the penalty for non-payment of withholding tax within the specified period is 1% of the unpaid tax for every thirty days of delay from the due date. It also state that the owners of establishments and those interested can avail from the educational journeys platform for withholding tax work launched in GAZT.GOV.SA as part of its awareness role to educate taxpayers about the stages and steps they are going through to complete the requirements of withholding tax, including steps to register the establishment, and provide Tax return, objection, and other electronic procedures via the portal.
The "Educational Journeys" platform contains visual and educational materials and FAQs that educate the taxpayer in his tax transactions, duties, and rights.
GAZT invites all entities and establishments to visit its official website GAZT.GOV.SA, which provides a wide range of information as a reference to the establishments. Establishments that have inquiries about withholding tax should reach GAZT via its unified number (19993) or on the social media account @Gazt_Care, or email firstname.lastname@example.org.