TaxSavvySA

Financial year end choice and first return date

Our articles say year ends 31 December, CR issued in October. When is the first return?

The situation

Zakat and income tax returns are due within 120 days of the financial year end, so a 31 December year end means about 30 April.

The law

  • Income Tax Law and Implementing Regulations, returns and advance payments: Return and final payment within 120 days of year end; advance payments of 25 percent of prior year tax unless below SAR 500,000
  • Zakat Implementing Regulation Article 102: Zakat return due within 120 days from the end of the Zakat year

What it means for you

A short first period from October to December still needs a return by about 30 April. Some companies set a long first period in the articles; check what yours says. Plan the audit early if you have foreign shareholders.

What to do

  1. Check the first financial period in the articles.
  2. Diarise the 120 day deadline.
  3. Book the auditor.

We can do this for youAfter the CR: register with ZATCA, GOSI, Qiwa, Muqeem and Mudad and set the first compliance calendar: SAR 3,500

Related