Learn how to prepare for corporate tax filing in Saudi Arabia. Understand ZATCA deadlines, tax rates, and compliance steps with expert support from BMS Auditing.
With Saudi Arabia’s evolving tax landscape, businesses must stay ahead of corporate tax obligations to ensure full compliance. The Zakat, Tax and Customs Authority (ZATCA) has implemented robust tax measures, making it essential for companies to understand filing requirements, deadlines, and preparation strategies.
BMS Auditing guides you on how to effectively prepare for corporate tax filing in Saudi Arabia and remain compliant with KSA tax regulations in 2025.
Understanding Corporate Tax in KSA
Corporate tax in KSA applies primarily to non-Saudi investors. Saudi and GCC nationals are typically subject to Zakat, not corporate tax. If a business has mixed ownership (Saudi and non-Saudi), the non-Saudi share of the income is taxed, while the Saudi portion is assessed for Zakat.
Who Must File?
Corporate tax applies to:
- Non-Saudi or non-GCC-owned capital companies
- Foreign investors with a permanent establishment (PE) in KSA
- Natural gas and oil producers
- Non-residents earning income from Saudi sources
ZATCA expects these entities to comply with proper tax filing in Saudi Arabia within specified deadlines.
Corporate Tax Rates and Zakat
- Corporate income tax: 20% on net adjusted profits
- Zakat: 2.5% of Zakat base (for Saudi/GCC entities)
- Oil & hydrocarbon businesses: taxed at 50%–85%
- Real estate transactions: subject to a 5% transaction tax
ZATCA Deadlines and Tax Compliance 2025
ZATCA mandates annual tax return submissions within 120 days after the end of the financial year. For instance:
- If your fiscal year ends on 31 December 2024, the return must be filed by 30 April 2025.
Failure to comply may result in hefty penalties, including fines and interest on unpaid tax.
How to Prepare for Tax Filing in Saudi Arabia
To meet ZATCA deadlines and achieve smooth KSA tax compliance in 2025, follow these key steps:
1. Timely Registration with ZATCA
Engage our experts and ensure your business is registered for corporate tax with ZATCA. This is a mandatory first step.
2. Maintain Accurate Records
Our accountants help you maintain proper accounts and insights related to compliance with ZATCA requirements, using IFRS or local regulations.
3. Assess Tax Obligations
Determine the taxability of your business income. Seek expert help if your business has mixed ownership or multiple income streams, we’re here for you.
4. Calculate Deductions and Zakat Base
We help you understand your taxable income and compute your Zakat base accurately to avoid miscalculations and penalties.
5. File Returns Before Deadline
Submit your corporate tax return electronically via the ZATCA portal. Avoid last-minute filings.
Why Choose BMS Auditing?
Our vastly experienced tax professionals provide end-to-end support for corporate tax in Saudi Arabia from tax registration to return filing, Zakat calculations, and representation before ZATCA.
Our experts ensure full KSA tax compliance in 2025, helping you avoid penalties and optimize tax planning.
Call us today and enjoy stress-free corporate tax support in KSA!
