Article 70 of the Saudi Income Tax Law
المادة 70 من نظام ضريبة الدخل · الفصل الثالث عشر: تحصيل الضرائب
The article requires the taxpayer to pay three advance payments during the tax year, each 25% of the previous year's tax after deducting withheld tax, if the result reaches SAR 500,000.
Official text (Arabic)
This article has not been amended since the law was issued.
أ - مع عدم الإخلال بالفقرة (ب) من هذه المادة ، يجب على المكلف الذي يحقق إيرادا في السنة الضريبية أن يسدد تحت حساب الضريبة ثلاث دفعات معجلة في أو قبل اليوم الأخير من الشهر السادس ، والشهر التاسع ، والشهر الثاني عشر من السنة الضريبية ، ومقدار الدفعة هو ناتج المعادلة الآتية :
25% × ( أ - ب ) حيث إن :
أ = ضريبة المكلف عن السنة السابقة طبقا لإقراره .
ب = مقدار الضريبة المسددة عن طريق الاستقطاع من المنبع في السنة السابقة بمقتضى المادة الثامنة والستين من هذا النظام.
ب - لا يلزم المكلف بتسديد دفعات معجلة بمقتضى الفقرة (أ) من هذه المادة إذا لم يبلغ ناتج المعادلة أعلاه مبلغا مقداره خمسمائة ألف (500.000) ريال .
ج - للمصلحة صلاحية تخفيض أي دفعة من الدفعات مستحقة السداد بمقتضى هذه المادة إذا اقتنعت أن دخل المكلف للسنة الضريبية - باستثناء الدخل الذي يتم استقطاع الضريبة عنه من المنبع بمقتضى المادة الثامنة والستين من هذا النظام - سيكون أقل وبشكل كبير من دخل السنة السابقة .
د - تعد الدفعة المسددة بمقتضى هذه المادة دفعة على الحساب من إجمالي ضريبة المكلف عن السنة الضريبية المسدد عنها الدفعة .
هـ - تنطبق أحكام هذا النظام الخاصة بالتحصيل وإجراءاته الإلزامية على دفعات الضريبة المعجلة مثلما تنطبق على الضريبة نفسها.
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 70 explained in plain English
This article requires a taxpayer who earns revenue in the tax year to pay part of his tax in advance during the same year, in three advance payments due on or before the last day of the sixth, ninth and twelfth months of the tax year.
How it is calculated: The amount of each payment = 25% × (A − B), where:
- (A) is the taxpayer's tax for the previous year according to his return.
- (B) is the tax paid by withholding at source in the previous year under Article 68.
Exemption from payments: The taxpayer is not required to make advance payments if the result of the formula does not reach SAR 500,000.
Reduction: The Department may reduce any payment if it is satisfied that the taxpayer's income for the current year, excluding income on which tax is withheld at source under Article 68, will be significantly lower than the previous year's income.
Effect of the payments: Each payment counts as a payment on account of the taxpayer's total tax for the same year, so the taxpayer pays the remainder afterwards by the payment deadline in Article 69. The Law's provisions on collection and its compulsory procedures also apply to advance payments as they apply to the tax itself.
To check whether the payments apply to your business or to request their reduction, it is advisable to consult a lawyer specializing in tax cases or a qualified accountant.
Practical example
A company in Khobar had tax of SAR 3,000,000 for the previous year, of which SAR 200,000 was withheld at source. The result of the formula is 25% × 2,800,000 = SAR 700,000, which exceeds SAR 500,000, so the company pays SAR 700,000 in each of the sixth, ninth and twelfth months, and these amounts count toward its annual tax.
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 70 of the Saudi Income Tax Law
How is the advance payment of income tax calculated?
By multiplying 25% by the difference between the previous year's tax according to the return and the tax paid by withholding at source in the previous year.
When am I not required to make advance payments?
If the result of the formula does not reach SAR 500,000, the taxpayer is not required to pay advance payments.
Can an advance payment be reduced?
Yes. The Department may reduce any payment if it is satisfied that the taxpayer's income for the year will be significantly lower than the previous year's, excluding income on which tax is withheld at source.
Articles this article refers to
More articles on Paying and Collecting Income Tax
- 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 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 69
The article requires the taxpayer to pay the tax due under his return within one hundred and twenty days of the end of his tax year.
على المكلف تسديد الضريبة المستحقة عليه بموجب إقراره خلال مائة وعشرين يوما من نهاية سنته الضريبية.
- Article 71
The article gives the Minister power to allow payment of amounts due from the taxpayer in installments where there are sufficient grounds under the Regulations' controls, while the delay fine remains due for the installment period.
أ - للوزير صلاحية تقسيط المبالغ المستحقة على المكلف متى توفرت الأسباب والمبررات الكافية في إطار الضوابط والشروط التي تحددها اللائحة ، وله الحق في تفويض مدير عام
- Article 72
The article gives a taxpayer who overpaid a refund of the overpayment, with compensation of 1% for each thirty days, starting after thirty days from his claim and running until he receives it.
يحق للمكلف الذي سدد مبلغا بالزيادة استرداد مبلغه الزائد وتعويض مقداره واحد بالمائة (1%) منه عن كل ثلاثين يوما تبدأ بعد مضي ثلاثين يوما على مطالبته وتستمر إلى حي
- Article 73
The article lets the Department seize the property of a taxpayer who has not paid, twenty days after notifying him, obliges holders of his property and banks to cooperate, and exempts his trade tools and furniture up to SAR 300,000.
أ - إذا لم يسدد المكلف الضريبة الواجبة عليه وفقا للتواريخ المحددة نظاما يجوز للمصلحة الحجز على أمواله المنقولة وغير المنقولة الجائز حجزها شرعا ، وللمصلحة المضي
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.