Department of Zakat and Income Tax - Saudi Arabia - The New Income Tax Law - Tax on Individuals: Persons Subject to Tax

The new In come Tax Law is effective as of 13/6/1425 H - 30/7/2004 -- Your Voluntary Compliance helps us to provide you a better service

Brief Information on DZIT

DZIT Organizational Structure

DZIT Directory

Map showing DZIT locations

New Registration

Updating Taxpayers’ Data at DZIT

Registration Forms

Sole Proprietorship Registration Form

Company Registration Form

Taxpayer’s Branch (subsidiary) Registration Form

Individual Registration Form

Non-Resident Registration Form

Returns According to New System

Returns According to Old System - Soon -

Provisional Tax Return

Final Tax Return for Temporary Foreign Companies & Joint Ventures

Final Return for 100% Saudi Companies

Final Return for Zakat Presumptive Assessment

Final Return for Professionals

Monthly Tax Deduction Form

Yearly Tax Deduction Form

Persons Subject to Zakat

Zakat Base Items, Allowed and Disallowed Deductions

Determination of Zakat Base

Zakat Base Items

Allowed Deductions

Disallowed Deductions

For Books and Records

Presumptive Cases

Tax on Individuals

Corporate Income Tax

Determination of Tax Base

Depreciation Schedule

Examples on Computation of Tax

Persons Subject to Tax

Delay Fines and Penalties

Persons Subject to Tax

Delay Fines and Penalties

Loss Carry-Forward

Allowed Deductions

Disallowed Deductions

Presumptive Cases

Example of Tax on Individuals

Example of Corporate Income Tax

The First Instance and the Higher Appeal Committees

Objections and Appeals by Zakatpayers

Objections and Appeals by Taxpayers

Legal Text on Zakat Duty

The New Income Tax

The Old Income Tax

Zakat Regulations

Income Tax By-Law

Registration Forms

Deduction Forms

Accelerated Tax Payment Form

Contract Acknowledgement Form

New Income Tax Law

Old Income Tax Law

Rules for Subjection to Taxation

Allowed Deductions

Withholding Tax

Tax On Individuals

Natural Gas Investment Tax

Tax On non-Residents

Determination of Tax Base

Taxpayer's rights & obligations

Treaties on Avoidance of Double Taxation Between KSA and France

Treaties of Reciprocal Exempt of Air and Maritime Transportation Activities Between KSA and USA

AGREEMENT BETWEEN THE GOVERNMENT OF THE KINGDOM OF SAUDI ARABIA AND THE GOVERNMENT OF THE PEOPLE’S REPUBLIC OF CHINA FOR THE AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION OF TAX EVASION WITH RESPECT TO TAXES ON INCOME AND ON CAPITAL

CONVENTION BETWEEN THE GOVERNMENT OF THE REPUBLIC OF INDIA AND THE GOVERNMENT OF THE KINGDOM OF SAUDI ARABIA FOR THE AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION OF TAX EVASION WITH RESPECT TO TAXES ON INCOME

CONVENTION BETWEEN THE GOVERNMENT OF THE KINGDOM OF SAUDI ARABIA AND THE GOVERNMENT OF THE ISLAMIC REPUBLIC OF PAKISTAN FOR THE AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION OF TAX EVASION WITH RESPECT TO TAXES ON INCOME

CONVENTION BETWEEN THE KINGDOM OF SAUDI ARABIA AND THE REPUBLIC OF AUSTRIA FOR THE AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION OF TAX EVASION WITH RESPECT TO TAXES ON INCOME AND ON CAPITAL

CONVENTION BETWEEN THE GOVERNMENT OF THE KINGDOM OF SAUDI ARABIA AND THE GOVERNMENT OF THE REPUBLIC OF SOUTH AFRICA FOR THE AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION OF TAX EVASION WITH RESPECT TO TAXES ON INCOME AND ON CAPITAL

CONVENTION BETWEEN THE GOVERNMENT OF THE KINGDOM OF SAUDI ARABIA AND THE GOVERNMENT OF THE UNITED KINGDOM OF GREAT BRITAIN AND NORTHERN IRELAND FOR THE AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION OF TAX EVASION WITH RESPECT TO TAXES ON INCOME AND ON CAPITAL

CONVENTION BETWEEN THE GOVERNMENT OF THE KINGDOM OF SAUDI ARABIA AND THE GOVERNMENT OF THE REPUBLIC OF KOREA FOR THE AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION OF TAX EVASION WITH RESPECT TO TAXES ON

Persons Subject to Tax

Tax rules on partnerships (personal companies)

Persons Subject to Tax

Persons Subject to Tax

Persons Subject to Tax

Concept of Permanent Establishment

Withholding Tax

Allowed Deductions

Disallowed Deductions

Presumptive Cases

Tax on individuals : Persons subject to tax

A non-Saudi natural person is subject to tax if he meets any of the following conditions:

- a resident who does business in the Kingdom.
- a partner in a resident partnership (personal company).
- a general partner in a resident company limited by shares.

A business activity: includes any commercial activity of any form, such as commercial, industrial, agricultural, financial and service business, equipment rental, insurance, banking and transportation. It also includes trade, professional activity, or any similar investment activity carried out to make profit. This includes the use of movable or immovable property.
A natural person is resident in the Kingdom for a taxable year if he meets any of the following conditions:
- He has a permanent place of abode in the Kingdom and is physically present in

the Kingdom during not less than 30 days in aggregate during the taxable year.

- He is physically present in the Kingdom during not less than 183 days in the

tax year.

A permanent place of abode is a place of residence a taxpayer owns, or leases for a duration not less than a year, or provided to him by any party for a duration not less than a year.

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