TaxSavvySA

Late filing penalty for income tax

Return late by a month. Penalty?

The situation

Late filing: 1 percent of gross revenue up to SAR 20,000. Delay fine: 1 percent of unpaid tax per 30 days.

The law

  • Income Tax Law penalty provisions (late filing): Late annual return: 1 percent of gross revenue up to SAR 20,000
  • Art 77, Income Tax Law: Delay fine of 1 percent of unpaid tax for each 30 days; 25 percent of the tax difference for incorrect returns

What it means for you

Example: revenue SAR 5,000,000 and tax of SAR 100,000 paid 30 days late: the late filing penalty is capped at SAR 20,000, plus a delay fine of 1 percent, SAR 1,000. File and pay now; every extra 30 days adds another 1 percent of the unpaid tax.

What to do

  1. File now.
  2. Pay tax.
  3. Request review if needed.

We can do this for youAnnual income tax return for foreign-owned and mixed companies: 20 percent CIT on the foreign share plus Zakat on the Saudi share: SAR 7,500

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