Article 56 of the Saudi Income Tax Law
المادة 56 من نظام ضريبة الدخل · الفصل الحادي عشر: أحكام عامة
The article makes the Authority responsible for administering, examining, assessing and collecting income tax and imposing its penalties, with a penalty imposed by decision of the Governor or whoever the Authority's board delegates.
Official text after amendments (Arabic)
Compiled from the original text and every officially published amendment; the amendments are shown in full below for comparison.
أ - الهيئة هي الجهة المسؤولة عن أعمال الإدارة والفحص والربط والتحصيل لضريبة الدخل، وإيقاع العقوبات المنصوص عليها في هذا النظام.
ب - يكون إيقاع العقوبة بقرار من المحافظ أو من يفوضه مجلس إدارة الهيئة بذلك
This is the official Arabic wording, the only legally binding version. We do not translate the law itself; the explanation below is ours. Official source: Bureau of Experts at the Council of Ministers
Article 56 explained in plain English
This article identifies the body that administers income tax and who has the power to decide on imposing penalties.
(a) Powers of the Authority: The Authority is responsible for:
- The administration of income tax.
- Examination.
- Tax assessment.
- Collection.
- Imposing the penalties provided for in the Law.
(b) Who issues the penalty decision? A penalty is imposed by decision of the Governor or of whoever is delegated by the Authority's board to do so. A penalty is imposed only by a decision issued by someone with this power under the text.
Amendment: This is the text in force for the article after its amendment by Royal Decree No. (M/113) dated 2/11/1438 AH.
These provisions apply to income tax taxpayers generally, and also apply to a taxpayer subject to the natural gas investment tax where the gas chapter has no provision, under Article 55. Article 57 follows, requiring every person subject to the tax to register his activity and imposing a fine for failing to register.
Anyone against whom a tax penalty decision has been issued who wishes to know his options may consult a lawyer specializing in tax and zakat.
Practical example
A company in Riyadh failed to comply with one of its tax obligations. The Authority examines its position, assesses the tax on it and collects it, but a fine is imposed on it only by decision of the Governor or of whoever the Authority's board has delegated to do so.
Translated from our Arabic explanation with machine assistance. For guidance only; it does not replace advice from a lawyer on your situation.
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Frequently asked questions about Article 56 of the Saudi Income Tax Law
Who is responsible for collecting income tax in Saudi Arabia?
The Authority is responsible for administering, examining, assessing and collecting income tax and imposing penalties.
Who issues the penalty decision for income tax violations?
A penalty is imposed by decision of the Governor or of whoever the Authority's board delegates to do so.
Was Article 56 of the Income Tax Law amended?
Yes. The text in force was issued by amendment under Royal Decree No. (M/113) dated 2/11/1438 AH.
Amendment history
Amendment
Official amendment text (Arabic)
تم تعديل هذه المادة بموجب المرسوم الملكي رقم : (م / 113 ) وتاريخ : 2 / 11 / 1438 هـ ، لتكون بالنص الآتي:
"أ - الهيئة هي الجهة المسؤولة عن أعمال الإدارة والفحص والربط والتحصيل لضريبة الدخل، وإيقاع العقوبات المنصوص عليها في هذا النظام.
ب - يكون إيقاع العقوبة بقرار من المحافظ أو من يفوضه مجلس إدارة الهيئة بذلك".
Original text before the amendments (Arabic)
المصلحة هي الجهة المسئولة عن أعمال الإدارة والفحص والربط والتحصيل لضريبة الدخل .
More articles on Income Tax Penalties
- Article 57
The article requires every person subject to income tax to register his activity before the end of his first fiscal year, excepts those subject only to final withholding, and imposes a fine of SAR 1,000 to 10,000.
أ - يجب على كل شخص خاضع للضريبة بموجب هذا النظام أن يقوم بتسجيل نشاطه لدى المصلحة قبل نهاية سنته المالية الأولى . ب - لا تنطبق أحكام هذه المادة على المكلفين الخ
- Article 76
The article imposes a fine of 1% of gross revenue, capped at SAR 20,000, for breaching the return provisions, and for late filing a fine of 5% to 25% of the unpaid tax where that is higher.
أ - تفرض غرامة على المكلف الذي لا يتقيد بأحكام الفقرات ( أ ، ب ، د ، و) من المادة الستين من هذا النظام مقدارها واحد بالمائة (1%) من إجمالي إيراداته على ألا تتجا
- Article 77
The article imposes a delay fine of 1% of the unpaid tax for each thirty days, and a fine of 25% of the tax difference where untrue information is provided or fraud is committed with intent to evade.
أ - إضافة إلى الغرامات الواردة في المادة السادسة والسبعين من هذا النظام وفي الفقرة (ب) من هذه المادة ، على المكلف تسديد غرامة تأخير بواقع واحد بالمائة (1%) من ا
- Article 78
The article gives the Department the right to prosecute a certified accountant in court if it is proved that he submitted or certified incorrect statements contrary to generally accepted accounting principles with intent to help the taxpayer evade.
بما لا يتعارض مع نظام المحاسبين القانونيين ، للمصلحة الحق في ملاحقة أي محاسب قانوني قضائيا يثبت أنه قدم أو شهد على صحة بيانات غير صحيحة، وبما يشكل انتهاكا للمبا
- Article 79
The article sets out the Minister of Finance's powers to issue the Regulations and instructions, amend depreciation groups and rates, waive tax debt and fines where collection is impossible, and award bonuses to outstanding employees.
للوزير الصلاحيات الآتية : أ - إصدار اللائحة التنفيذية لهذا النظام. ب - إصدار التعليمات واتخاذ الإجراءات التي يراها ضرورية لوضع هذا النظام موضع التنفيذ . ج - تعد
- Article 80
The article provides that the Income Tax Law is to be published in the Official Gazette and take effect ninety days after the date of its publication.
أ - ينشر هذا النظام في الجريدة الرسمية ويعمل به بعد تسعين يوما من تاريخ نشره.
The texts are reproduced from the official website of the Bureau of Experts at the Council of Ministers for reference; where they differ, the officially published Arabic text prevails. This content is not legal advice.