Article 56: Tax Administration

      The Department is the body responsible for the administration, examination, assessment and collection of income tax.

Article 57: Taxpayers Registration

(a)   Every person subject to tax in accordance with this Law shall register with the Department before the end of its first fiscal year.

(b)   The provisions of this Article shall not apply to taxpayers subject only to final withholding tax in accordance with Article Sixty Eight of this Law.

(c)    A fine not less than one thousand (1000) riyals and not exceeding ten thousand (10.000) riyals shall be imposed for failure to register. The Regulations shall specify the restrictions and amount of fine on different categories of taxpayers.

Article 58: Books and Records

(a)   A taxpayer, other than a non resident with no permanent establishment in the Kingdom, shall maintain the necessary commercial books and accounting records in Arabic for precise determination of the tax payable by it.

(b)   The Department has the right not to allow a deduction if the taxpayer is unable without reasonable excuse to produce a document of the expense or evidence supporting the legitimacy of its claim for the deduction.

Article 59: Confidentiality of Information

(a)   The Department and all its staff shall maintain confidentiality of  information pertaining to taxpayers which they have access to in their official capacity. As an exception, they may disclose information only to the following bodies:

(1)   Employees of the Department, for the purpose of carrying out their duties under the law.

(2)   Employees of the Customs Authority, for the purpose of enforcing the Customs Law.

(3)   The General Audit Bureau, in its official capacity, for the purpose of auditing and reviewing.

(4)   Tax authorities of foreign countries in accordance with treaties to which the Kingdom is a party.

(5)   Law enforcement agencies, for the purpose of criminal prosecution of tax offenses.

(6)   Any judicial body in the Kingdom, upon its order, in a case under review, to determine a taxpayer's tax liability, or in any other administrative or criminal matter under review.

(b)   A person receiving information under paragraph (a) of this Article shall be required to maintain its confidentiality, and not to use it except for the purpose for which it is required.

(c)    Information concerning a taxpayer may be disclosed to another person upon the taxpayer's written consent.