Article 58 of the Saudi Income Tax Law
المادة 58 من نظام ضريبة الدخل · الفصل الحادي عشر: أحكام عامة
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.
Official text (Arabic)
This article has not been amended since the law was issued.
أ - على المكلف - باستثناء غير المقيم الذي ليس له منشأة دائمة في المملكة - أن يمسك الدفاترالتجارية والسجلات المحاسبية الضرورية باللغة العربية للتحديد الدقيق للضريبة الواجبة عليه .
ب - للمصلحة الحق في رفض تحميل أي مصروف إذا عجز المكلف دون سبب معقول عن تقديم المستند الخاص بالمصروف أو القرائن المؤيدة لصحة المطالبة به .
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 58 explained in plain English
This article deals with the accounting documentation on which determination of the tax depends.
(a) Keeping books:
- The taxpayer must keep the commercial books and accounting records necessary for accurately determining the tax due from him.
- They must be in Arabic.
- A non-resident without a permanent establishment in the Kingdom is excepted from this.
Commercial books under Article 1 are the books in which all commercial transactions must be recorded, as described in Royal Decree (M/61) dated 17/12/1409 AH, its Implementing Regulations and their amendments.
(b) Rejecting expenses: The Department has the right to reject the charging of any expense if the taxpayer fails, without reasonable cause, to provide:
- the document for the expense, or
- the evidence supporting the validity of claiming it.
The text requires that the taxpayer's failure be without reasonable cause. Keeping supporting invoices, contracts and documents therefore protects the taxpayer from having his expenses rejected.
This article is preceded by Article 57 on registration, and followed by Article 59, which requires the Department to keep taxpayers' information confidential. If an expense is rejected, it is advisable to consult a lawyer specializing in tax and zakat.
Practical example
A contracting company in Riyadh included in its return a maintenance expense of SAR 80,000, but did not provide the invoice or any document or evidence proving it, and gave no reasonable cause for this. The Department has the right to reject charging this expense. If the invoice was lost but the company provided the maintenance contract and a bank transfer supporting it, these may be evidence supporting the validity of the claim.
Translated from our Arabic explanation with machine assistance. For guidance only; it does not replace advice from a lawyer on your situation.
How we write and review contentCommercial & Corporate Law lawyers: ask a specialist about your case
Describe your situation briefly and we'll suggest a lawyer who specialises in this law
Commercial & Corporate Law lawyers
Lawyers who handle this kind of case
Ibrahim Al Salem Law Firm
Active contributor
Dr. Ali Al-Rubaie Law Office and Ittihad Al-Asr Legal Company
Frequently asked questions about Article 58 of the Saudi Income Tax Law
Must accounting books be kept in Arabic?
Yes. The taxpayer must keep the necessary commercial books and accounting records in Arabic, except a non-resident without a permanent establishment in the Kingdom.
When does the Department reject an expense in the return?
If the taxpayer fails, without reasonable cause, to provide the document for the expense or the evidence supporting the validity of claiming it.
Must a non-resident keep books in Saudi Arabia?
A non-resident without a permanent establishment in the Kingdom is excepted from this obligation.
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 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 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.