Service 04 - Tax & Regulatory
Zakat & Tax.
ZATCA-aligned zakat, corporate income tax, and withholding tax - computed correctly, filed on time, documented so that any future audit finds nothing but what you already disclosed.
What we do
Every ZATCA obligation,
end to end.
- Zakat computation & filing Annual zakat base calculation, declaration preparation, and submission through the ZATCA portal - with full working papers.
- Corporate income tax CIT computation for non-GCC shareholders, tax-adjusted P&L, deferred tax treatment, and filing to ZATCA deadlines.
- Mixed ownership structures Split zakat and CIT treatment for companies with both Saudi/GCC and foreign ownership - one of the most common traps in Saudi tax.
- Withholding tax WHT identification on cross-border payments, monthly filing, and tax-treaty analysis to apply reduced rates where eligible.
- Zakat & tax objections Preparation and defence of objections to ZATCA assessments, including General Secretariat for Tax Committees representations.
- Tax advisory Pre-transaction advice on mergers, reorganisations, dividend flows, and structure changes - before you incur the liability.
Why it matters
ZATCA penalties scale fast.
Late filing, under-declaration, or an incorrect zakat base can trigger penalties that dwarf the underlying liability. ZATCA's move to digitised, cross-referenced filings means inconsistencies are caught automatically - and questions follow within weeks, not years. The cost of getting zakat and tax wrong is no longer "maybe one day" - it is "almost certainly, and soon."
Getting it right is not just about avoiding penalties. Well-structured tax work often identifies legitimate reductions - allowable deductions overlooked, treaty benefits not claimed, zakat-base items correctly excluded. For companies with mixed ownership, correct split treatment can materially change the effective rate. The work pays for itself, and the certainty it buys is worth the fee on its own.
Our approach
Four phases.
Built for ZATCA-era scrutiny.
Assess
We review your ownership structure, prior filings, ZATCA correspondence, and pending exposures. The output: a one-page position summary showing what's solid, what's at risk, and what's urgent.
Structure
We build the computation files - zakat base, tax-adjusted P&L, WHT schedule - with supporting documentation that would survive an audit on day one, not just on filing day.
File
Declarations prepared, reviewed by a senior partner, and submitted through the ZATCA portal ahead of deadline. Payment advice issued to your treasury team with clear cut-off dates.
Defend
If ZATCA raises queries or assessments, we respond directly on your behalf - no handoff, no delay. Objection preparation and committee representation included in the retainer where scope allows.
Deliverables
What you receive.
Annual zakat return
Complete zakat declaration with full computation file, filed to ZATCA with working papers archived and accessible.
CIT return (where applicable)
Corporate income tax declaration for non-GCC shareholders, fully reconciled to IFRS financial statements.
Monthly WHT filings
Withholding tax schedules and filings for all qualifying cross-border payments, with treaty analysis.
Tax position memorandum
A plain-language summary for your board explaining the year's position, assumptions, and exposure areas.
ZATCA correspondence handling
All queries, notices, and assessments managed directly by us - drafted, reviewed, and submitted on your behalf.
Pre-transaction advice
Short technical notes on the tax impact of transactions before you commit - dividends, restructures, M&A.
Who this is for
Four profiles we serve best.
Mixed-ownership companies
Businesses with both Saudi/GCC and non-GCC shareholders needing correct zakat/CIT split treatment.
Large Saudi family groups
Multi-entity family holdings where group zakat computation, inter-company flows, and dividend treatment are non-trivial.
Foreign-invested entities
Subsidiaries of international groups facing CIT, WHT on royalties/management fees, and treaty analysis.
Businesses facing ZATCA queries
Companies under active ZATCA assessment or objection processes who need technical defence, not just filing.
Regulatory context
The frameworks we work within.
Zakat regulations
ZATCA's zakat rules, including the Implementing Regulations and their periodic updates. We apply the current base computation, permissible deductions, and timing rules - current to the latest circular.
Income Tax Law & Bylaws
Saudi Income Tax Law applying to non-GCC shareholders and permanent establishments - rate, deductions, capital allowances, and loss carry-forward rules.
Withholding tax rules
WHT rates and scope under ZATCA rules, combined with tax-treaty provisions - we analyse the combined effect to establish the correct rate, not the default rate.
BEPS & transfer pricing
Saudi Arabia's transfer pricing regulations aligned with OECD BEPS - we help you document intra-group pricing and meet the annual disclosure requirements.
Related insights
From our desks.
Short technical notes from our partners on the Saudi zakat and tax topics most relevant right now - circular updates, common pitfalls, defensive positions.
Insights coming soon - a library of technical notes on ZATCA practice is in preparation.
Exposure you want to understand?
Tell us about your structure and current ZATCA standing. A senior partner will respond within one working day with an initial position view - no sales pitch, no obligation.
Request a consultation