Article 57 of the Saudi Income Tax Law
المادة 57 من نظام ضريبة الدخل · الفصل الحادي عشر: أحكام عامة
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.
Official text (Arabic)
This article has not been amended since the law was issued.
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 الخاضعين لضريبة الاستقطاع النهائي فقط وفقا للمادة الثامنة والستين من هذا النظام .
ج - تفرض غرامة لا تقل عن ألف (1000) ريال ولا تزيد عن عشرة آلاف (10.000) ريال عن عدم التسجيل ، وتحدد اللائحة ضوابط ومقدار الغرامة على الفئات المختلفة للمكلفين .
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 57 explained in plain English
This article regulates the duty to register with the Department (the Department of Zakat and Income, as defined in Article 1).
(a) Who must register and when? Every person subject to tax under the Law, who must register his activity before the end of his first fiscal year.
(b) The exception: The article does not apply to taxpayers subject only to the final withholding tax under Article 68. A person whose liability is limited to this tax need not register under this article.
(c) The fine:
- Failure to register is subject to a fine of not less than SAR 1,000 and not more than SAR 10,000.
- The Implementing Regulations set the controls for the fine and its amount for the different categories of taxpayers; the text itself does not state these controls.
Imposing this fine falls within Article 56, which makes the Authority responsible for imposing the penalties provided for in the Law, by decision of the Governor or whoever the Authority's board delegates. Article 58 follows, requiring the taxpayer to keep books and records in Arabic.
Anyone starting an activity who is unsure whether he must register may consult a lawyer specializing in tax and zakat.
Practical example
A non-Saudi resident started a business in Jeddah and was subject to income tax. He must register his activity before the end of his first fiscal year. If he does not, he may be fined between SAR 1,000 and SAR 10,000 under the controls set by the Regulations.
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 57 of the Saudi Income Tax Law
When must I register for income tax?
Every person subject to the tax must register his activity before the end of his first fiscal year.
What is the fine for failing to register for income tax?
Not less than SAR 1,000 and not more than SAR 10,000, with the Regulations setting its controls and amount for the different categories.
Who is exempt from registering for income tax?
Taxpayers subject only to the final withholding tax under Article 68.
Articles this article refers to
More articles on Tax Return and Registration
- Article 36
The article imposes tax on the partners in partnerships, not on the partnership, requires the partnership to file an information return and choose its accounting policies, and treats limited partners' shares like capital companies.
أ - تفرض الضريبة على الشركاء في شركات الأشخاص وليس على الشركة ذاتها ، إلا أنه يجب على الشركة تقديم إقرار ضريبي لغرض المعلومات يوضح فيه مقدار الدخل والربح والخسا
- Article 51
The article makes the gas investment tax base separate for each exploration and production contract or agreement with the Government, and separate from the taxpayer's other activities, with a separate return and audited accounts for each.
أ - لغرض حساب ضريبة استثمار الغاز الطبيعي يعتبر وعاء ضريبة استثمار الغاز الطبيعي للمكلف عن كل عقد أو اتفاقية تنقيب عن الغاز وإنتاجه مع الحكومة مستقلا عن وعاء ضر
- Article 58
The article requires the taxpayer, other than a non-resident without a permanent establishment, to keep books and accounting records in Arabic, and lets the Department reject any expense for which the taxpayer fails, without reasonable cause, to provide documents or evidence.
أ - على المكلف - باستثناء غير المقيم الذي ليس له منشأة دائمة في المملكة - أن يمسك الدفاترالتجارية والسجلات المحاسبية الضرورية باللغة العربية للتحديد الدقيق للضر
- Article 59
The article requires the Department and its employees to keep taxpayers' information confidential, limits the excepted recipients to six bodies, binds the recipient to confidentiality, and allows disclosure to others with the taxpayer's written consent.
أ - تحافظ المصلحة وجميع الأشخاص العاملين بها على سرية المعلومات المتعلقة بالمكلفين التي يطلعون عليها بحكم وظائفهم ، واستثناء من ذلك يجوز لهم الكشف عن المعلومات
- Article 60
The article regulates the tax return: its form and paying the tax with it, its due date within 120 days, who must file, the cessation return, certification by a certified accountant, and a partnership's information return.
أ - يجب على كل مكلف مطالب بتقديم إقرار أن يقدمه وفقا للنموذج المعتمد ، وتدوين رقمه المميز عليه ، وتسديد الضريبة المستحقة بموجبه إلى المصلحة . ب - يجب تقديم الإق
- Article 61
The article requires persons and government bodies to give the Department tax information and details of their contracts with the private sector within three months, gives it the right of field examination, and makes those who default jointly liable.
أ - على جميع الأشخاص والجهات الحكومية تزويد المصلحة بأي معلومات مرتبطة بالضريبة وتطلبها المصلحة لأغراض الضريبة الواردة في هذا النظام . ب - للمصلحة الحق في فحص د
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.