The Zakat, Tax and Customs Authority (ZATCA) has called upon all commercial establishments and entities subject to withholding tax in the Kingdom of Saudi Arabia to submit their withholding tax forms for December 2025. The Authority has set January 11, 2026, as the deadline for submitting these forms, emphasizing the importance of adhering to the statutory deadlines to ensure the integrity of the tax obligations of these establishments.
The importance of tax compliance and its role in the national economy
This measure comes as part of the Kingdom's ongoing efforts to enhance tax compliance and improve the efficiency of the financial system, in line with the objectives of Vision 2030, which seeks to diversify revenue sources and promote financial transparency. Withholding tax is a key financial tool that ensures the state's right to revenues generated from economic activities conducted by non-resident entities within the Kingdom, thus contributing to the protection of the national economy and fostering fair competition between local and foreign companies.
Details of fines and payment mechanism
In its commitment to raising taxpayer awareness, ZATCA clarified that late payment of taxes or submission of forms will result in financial penalties. The late payment penalty is calculated at 1% of the unpaid tax amount for every thirty days of delay, starting from the due date. These strict measures aim to promote financial discipline among businesses and ensure the timely collection of public dues.
The concept of withholding tax and the target groups
Withholding tax is levied on payments made by a source within the Kingdom to non-resident entities (i.e., those without a permanent establishment in Saudi Arabia). These payments encompass a wide range of services and revenues, such as royalties, management fees, rent, airline tickets, air and sea freight, dividends, and other services stipulated in the regulations. The tax is calculated according to the rates specified in Article (68) of the Income Tax Law and Article (63) of its Implementing Regulations, with the rate varying depending on the type of service provided.
Communication channels and digital services
In its efforts to streamline procedures, the Authority encouraged taxpayers to utilize its advanced electronic services through its official website (zatca.gov.sa) to submit forms and pay dues easily and conveniently. The Authority also provided multiple support and assistance channels to address inquiries from the business sector, including:
- The unified number for the call center (19993) which operates 24 hours a day, seven days a week.
- The "Ask Zakat, Tax and Customs" account on the X platform (@Zatca_Care).
- Email address ( [email protected] ).
- Instant messaging is available via the website.
