Article 61 of the Saudi Income Tax Law
المادة 61 من نظام ضريبة الدخل · الفصل الثاني عشر: تقديم الإقرارات والربط وإجراءات الاعتراض والاستئناف
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.
Official text (Arabic)
This article has not been amended since the law was issued.
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 دفاتر وسجلات المكلف ميدانيا أثناء ساعات العمل للتحقق من صحة الضريبة الواجبة عليه .
ج - على جميع الأشخاص والجهات الحكومية تزويد المصلحة بمعلومات عن العقود التي تبرمها مع القطاع الخاص خلال ثلاثة أشهر من تاريخ إبرام العقد ، تتضمن اسم وعنوان كل من طرفي العقد ، وموضوع العقد ، وقيمته ، وشروطه المالية ، وتاريخ بدء تنفيذه ، وانتهائه ، ويعد الشخص الذي لا يزود المصلحة بالمطلوب وفقا لهذه الفقرة ، أو لا يشعر المصلحة بتاريخ توقف العمل الوارد في العقد ، مسئولا بالتضامن عن أي مطالبة ضريبية تستحق على العقد ، وتحدد اللائحة الضوابط والإجراءات المطلوبة لتنفيذ هذا الالتزام .
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 61 explained in plain English
This article gives the Department the means of obtaining information needed to verify the tax.
(a) Duty to provide information: All persons and government bodies must give the Department any tax-related information it requests for the purposes of the tax under the Law.
(b) Field examination: The Department has the right to examine the taxpayer's books and records in the field during working hours to verify the tax due from him.
(c) Reporting contracts with the private sector: All persons and government bodies must give the Department information about the contracts they conclude with the private sector within three months of the date of concluding them, including:
- The name and address of each party to the contract.
- The subject of the contract, its value and its financial terms.
- The date it starts and ends.
Consequence of default: Anyone who does not give the Department this information, or does not notify it of the date work under the contract stopped, is treated as jointly liable for any tax claim due on the contract. The Regulations set the controls and procedures needed to implement this obligation.
This article supplements Article 60 on returns, and leads into Article 62, which gives the Department the right to correct the return and make assessments. Anyone contracting with a contractor or supplier who wants to avoid joint liability may consult a lawyer specializing in tax and zakat.
Practical example
A company in Jeddah contracted with a private-sector contractor to build an office building worth SAR 5 million. Within three months of concluding the contract it must give the Department the names and addresses of both parties, the subject and value of the contract, its financial terms and its start and end dates. If it does not, it becomes jointly liable for any tax claim due on this contract.
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 61 of the Saudi Income Tax Law
Does the Department of Zakat and Income have the right to examine a company's books at its premises?
Yes. The Department has the right to examine the taxpayer's books and records in the field during working hours to verify the tax.
What is the deadline to report contracts with the private sector to the Department?
Within three months of the date of concluding the contract.
What is the consequence of not reporting a contract to the Department?
A person who does not give it the required information, or does not notify it of the date work stopped, is jointly liable for any tax claim due on the contract.
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 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
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.