Saudi Arabia Compliance Guide
Filing requirements, deadlines, and fees for Saudi Arabia business entities.
Filing Obligations
Commercial Registration Renewal
Annual or multi-yearAll Saudi companies must maintain a valid commercial registration. Renewal must be completed before expiry through the Ministry of Commerce e-services.
Before the expiry of the current registration (1-year or 5-year renewal)
SAR 1,200 per year (LLC); SAR 1,600 per year (JSC)
SAR 200 per day of delay. Registration may be cancelled after 60 days of expiry.
Online via the Ministry of Commerce portal or Absher Business
Zakat / Income Tax Return
AnnualSaudi-owned entities pay Zakat (2.5% on the Zakat base / net worth). Foreign-owned entities pay corporate income tax at 20%. Mixed-ownership entities pay proportionally. Upstream oil and gas companies pay 50%–85%. All entities must file annual returns with ZATCA.
Within 120 days of the end of the fiscal year
No filing fee
1% of unpaid tax per 30 days of delay (capped at 25%). Additional penalties for incorrect returns.
Online via the ZATCA portal
VAT Return
Monthly or QuarterlySaudi Arabia levies VAT at 15% (increased from 5% in July 2020). Mandatory registration applies to businesses with annual taxable supplies exceeding SAR 375,000.
Last day of the month following the tax period (monthly for turnover > SAR 40m; quarterly otherwise)
No filing fee
5%–25% of unpaid VAT, plus SAR 10,000 fine for late registration.
Online via the ZATCA portal
Key Dates
Frequently Asked Questions
What is the difference between Zakat and corporate income tax in Saudi Arabia?
Saudi and GCC-national owned entities pay Zakat (an Islamic religious levy) at 2.5% on the Zakat base (broadly, net worth). Foreign-owned entities pay corporate income tax at 20% on taxable income. If ownership is mixed, each portion is taxed under the applicable regime.
What is a Simplified Joint Stock Company (SJSC)?
Introduced under the new Saudi Companies Law (2023), the SJSC is designed for startups and SMEs. It has no minimum capital, flexible governance, and allows for different share classes with varying rights — similar to a US-style corporation preferred by venture-backed companies.
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Get Started FreeLast updated: 2026-02-27. Information is provided for general guidance and may not reflect the most recent changes. Always verify with the official state registrar.