VAT, zakat, corporate income tax and withholding tax are four separate obligations on four separate clocks. We take the calendar off you and file against it.
Which of these bite depends on where your ownership sits and what you sell. Mixed Saudi and foreign ownership means both zakat and income tax, apportioned.
| Obligation | Rate | Who it applies to |
|---|---|---|
| Value Added Tax | 15% standard | Any business over the registration threshold, regardless of ownership |
| Zakat | 2.5% of the zakat base | Saudi and GCC-owned shares of a business |
| Corporate income tax | 20% | Non-GCC owned shares of a business |
| Withholding tax | 5% – 20% | Payments to non-residents; rate depends on the payment type |
| Real Estate Transaction Tax | 5% | Disposals of real estate |
| Excise tax | 50% – 100% | Tobacco, energy and sweetened drinks |
Rates, thresholds and filing frequencies change. The figures above are a general orientation, not advice, and should be confirmed against ZATCA's current published guidance before you rely on them for a filing.
Ongoing compliance, or a one-off piece of work to get something back under control.
Establishing whether registration is mandatory, voluntary or not yet required, then registering on the ZATCA portal. Group registration where a corporate structure supports it, and deregistration when a business winds down rather than leaving a dormant obligation running.
Periodic return preparation and filing — monthly or quarterly depending on your turnover band. Output tax, input tax recovery, reverse charge on imported services, and the adjustments that get missed: bad debt relief, credit notes and capital asset treatment.
The one we are unusually placed to do. Import VAT recoverable on a return has to agree with what was declared at the border. We hold the customs entries, so the reconciliation happens against source documents rather than a spreadsheet someone rebuilt from invoices.
Calculating the zakat base — which is not simply profit, and where most of the work sits. Adjusting for long-term assets, provisions and financing, preparing the declaration, and keeping the supporting analysis in a form that survives a query.
Where ownership is partly non-GCC, zakat and income tax apply side by side and are apportioned. Getting the split right matters, and getting it wrong tends to surface years later as an assessment with penalties attached.
Payments to non-resident suppliers carry withholding obligations at rates that vary by payment type — management fees, royalties, technical services, rent, dividends and interest are all treated differently. Monthly filing, plus treaty relief where a double tax agreement applies.
Preparing the analysis and supporting documentation when ZATCA raises a query or issues an assessment. Where formal representation as a registered tax agent is required, that is referred to a ZATCA-registered agent and we support them with the underlying work.
A single view of every deadline that applies to your entity across the year, with the preparation work scheduled backwards from each one. Unglamorous, and the single most effective thing we do for most clients.
A company trading between the two countries has HMRC on one side and ZATCA on the other, with different year ends, different VAT mechanics and different rules on what counts as a permanent establishment. Advisers who only see one side tend to optimise their half and leave the interaction to you.
SMR Financials handles UK corporation tax, Self Assessment and VAT under Making Tax Digital. We handle the Saudi side. The same people see both, which is the entire point of the arrangement.
The UK and Saudi Arabia have a double taxation agreement, so withholding on cross-border payments is often reducible — but only if it is claimed correctly and on time.
