Missed WHT for months
Missed WHT for 6 months. Penalty?
The situation
Late payment carries 1 percent per 30 days under the Law, plus an extra 1 percent per 30 days under the Regulations.
The law
- 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
- Art 68, Income Tax Law and Art 63, Implementing Regulations: Residents and PEs withhold tax on payments to non-residents from a Saudi source at 5, 15 or 20 percent
What it means for you
Example: SAR 10,000 of WHT paid six months late: roughly 1 percent per 30 days under the Law plus 1 percent per 30 days under the Regulations, about 12 percent in all, or SAR 1,200. File every missed month now to stop the fines growing.
What to do
- Compute WHT.
- File returns.
- Pay.
We can do this for youMonthly withholding tax on payments to non-residents: rates, return and payment by the 10th: SAR 750