Article 65 of the Saudi Income Tax Law
المادة 65 من نظام ضريبة الدخل · الفصل الثاني عشر: تقديم الإقرارات والربط وإجراءات الاعتراض والاستئناف
The article sets the period in which the Department may make or amend a tax assessment, five or ten years depending on the case, and the period available to the taxpayer to claim a refund of overpayments.
Official text (Arabic)
This article has not been amended since the law was issued.
أ - يحق للمصلحة بإشعار مسبب إجراء أو تعديل الربط الضريبي خلال خمس سنوات من نهاية الأجل المحدد لتقديم الإقرار الضريبي عن السنة الضريبية ، كما يحق لها ذلك في أي وقت إذا وافق المكلف خطيا على ذلك .
ب - يحق للمصلحة إجراء أو تعديل الربط خلال عشر سنوات من نهاية الأجل المحدد لتقديم الإقرار الضريبي عن السنة الضريبية إذا لم يقدم المكلف إقراره الضريبي ، أو إذا تبين أن الإقرار غير كامل أو غير صحيح بقصد التهرب الضريبي .
ج - يجوز للمكلف طلب استرداد أي مبالغ مسددة بالزيادة في أي وقت خلال خمس سنوات من السنة الضريبية المسدد عنها بالزيادة .
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 65 explained in plain English
This article sets time limits on the power of the Department (the Department of Zakat and Income, as defined in the Law) to make a tax assessment, that is, to determine or amend the tax due from the taxpayer, and gives the taxpayer a period to claim a refund of what he overpaid.
- The general rule (paragraph a): The Department may make or amend the assessment within five years starting from the end of the deadline for submitting the return for the tax year, and this must be by a reasoned notice, that is, one explaining the grounds for the assessment or amendment. It may do so at any time if the taxpayer consents in writing.
- The extended period (paragraph b): The period becomes ten years from the end of the deadline for submitting the return in two cases: if the taxpayer did not submit his return at all, or if the return is found to be incomplete or incorrect with intent to evade tax.
- The taxpayer's right to a refund (paragraph c): The taxpayer may claim a refund of any amounts he overpaid at any time within five years of the tax year for which he overpaid.
This article is linked to Article 66, which allows the taxpayer to object to the Department's assessment within sixty days of receiving the assessment letter, failing which the assessment becomes final and the tax payable. Knowing the date of receipt of the assessment letter is therefore as important as knowing the assessment period itself.
It is useful for the taxpayer to keep his returns and documents throughout these periods, and if he receives a notice of assessment or amendment that he considers out of time or unjustified, he is advised to consult a lawyer specializing in tax cases.
Practical example
A company in Jeddah submitted its return for a given year on time, then received a notice amending the assessment six years after the end of the deadline for submitting that return. If the company had not consented in writing, and its return was not incorrect with intent to evade, the general five-year period under paragraph (a) has passed.
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 65 of the Saudi Income Tax Law
What is the tax assessment period under the Income Tax Law?
Five years from the end of the deadline for submitting the return for the tax year, extended to ten years if the taxpayer did not submit his return or it was incomplete or incorrect with intent to evade.
May the Department amend the assessment after five years have passed?
Yes, in two cases: if the taxpayer consents in writing, or in the cases of paragraph (b), in which the period extends to ten years.
What period is available to claim a refund of tax overpaid?
The taxpayer may claim a refund at any time within five years of the tax year for which he overpaid.
More articles on Tax Assessment and Anti-Avoidance
- Article 35
The article gives the terms of international treaties and agreements to which the Kingdom is a party precedence over the Income Tax Law's provisions in case of conflict, except the anti-avoidance provisions in Article 63.
عند تعارض شروط معاهدة أو اتفاقية دولية تكون المملكة طرفا فيها مع مواد وأحكام هذا النظام ، تسري شروط المعاهدة أو الاتفاقية الدولية باستثناء أحكام المادة الثالثة
- Article 56
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.
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
- 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
- Article 62
The article gives the Department the right to correct the tax in a return and to assess where no return is submitted, requires it to notify the taxpayer by a means proving receipt, and permits an additional assessment that the taxpayer may object to.
أ - للمصلحة الحق في تصحيح وتعديل الضريبة المبينة في الإقرار بما يجعلها متوافقة مع أحكام هذا النظام ، ولها الحق في إجراء الربط الضريبي إذا لم يقدم المكلف إقراره
- Article 63
The article gives the Department powers to combat tax avoidance: disregarding transactions with no tax effect, recharacterizing them, estimated assessment, reallocating income among related parties, dealing with their losses, and income splitting.
أ - لغرض تحديد الضريبة للمصلحة الحق في : 1 - عدم الأخذ بأي معاملة ليس لها أثر ضريبي . 2 - إعادة تكييف المعاملات التي لا يعكس شكلها جوهرها ووضعها في صورتها الحقي
- Article 64
The article defines related persons: a relative, spouse or in-law up to the fourth degree, a partner controlling 50% or more, a beneficiary of endowed funds, and companies under common control.
أ - يعد الشخص الطبيعي مرتبطا بشخص طبيعي آخر إذا كان زوجا أو صهرا للشخص ، أو قريبا له حتى الدرجة الرابعة . ب - يعد الشخص الطبيعي مرتبطا بأي نوع من أنواع الشركات
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.