TaxSavvySA

Mismatch between Qawaem and ZATCA figures

Our Qawaem statements differ from what we filed with ZATCA. Is that a problem?

The situation

The Zakat or tax return is built on the financial statements, and ZATCA receives audited statements with mixed and foreign company returns. Differences invite queries.

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
  • Ministry of Commerce guidance on filing financial statements: Statements filed on Qawaem within six months of year end by the manager or board

What it means for you

Common causes are late audit adjustments after the return was filed. If statements change after filing, consider whether the return needs correcting. Keep a reconciliation that explains each difference.

What to do

  1. Compare return and final statements.
  2. Correct the return if needed.
  3. Keep a reconciliation.

We can do this for youAnnual financial statements, statutory audit and Qawaem filing within six months: SAR 6,000

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