Article 71 of the Saudi Income Tax Law
المادة 71 من نظام ضريبة الدخل · الفصل الثالث عشر: تحصيل الضرائب
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.
Official text (Arabic)
This article has not been amended since the law was issued.
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 المصلحة فيما يراه من هذه الصلاحية . كما له أيضا أو لمن يفوضه في ذلك حق إلغاء التقسيط متى تبين له أن حقوق الخزينة العامة معرضة للضياع.
ب - لا يعفى تقسيط الضريبة وفقا لهذه المادة المكلف من تسديد غرامة التأخير بمقتضى الفقرة ( أ ) من المادة السابعة والسبعين من هذا النظام عن فترة التقسيط .
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 71 explained in plain English
This article deals with the position of a taxpayer who finds it hard to pay the tax in one payment, and gives the Minister (the Minister of Finance, as defined) power to allow the amounts due from him to be paid in installments.
- Condition for installments: sufficient reasons and grounds must exist, and it must be within the controls and conditions set by the Implementing Regulations. The article itself does not set the number or duration of installments, but refers this to the Regulations.
- Delegation: The Minister may delegate part of this power, as he sees fit, to the Director General of the Department.
- Cancelling installments: The Minister or his delegate may cancel the installments whenever it becomes clear that the rights of the public treasury are at risk of being lost.
Effect of installments on the fine: Paragraph (b) provides that installments do not relieve the taxpayer of the delay fine set in paragraph (a) of Article 77 for the installment period. Under Article 77, that fine is 1% of the unpaid tax for each thirty days of delay, calculated from the date the tax fell due to the date of payment. This means installments make payment easier but do not stop the delay fine accruing.
This article comes after Article 70 on advance payments, and before Article 72 on refunding amounts overpaid. When considering applying for installments and weighing their cost, it is advisable to consult a lawyer specializing in tax cases.
Practical example
An establishment in Makkah has tax due and cannot pay it in one payment because of financial circumstances, so it applied for installments, explaining its reasons. If the competent authority approves installments under the Regulations' controls, the delay fine of 1% for each thirty days remains calculated on the unpaid amount during the installment period.
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 71 of the Saudi Income Tax Law
Can income tax be paid in installments?
Yes. The Minister or his delegate may allow the amounts due to be paid in installments where sufficient reasons and grounds exist, within the controls and conditions set by the Regulations.
Do installments relieve me of the delay fine?
No. The article provides that installments do not relieve the taxpayer of the delay fine in paragraph (a) of Article 77 for the installment period.
When are tax installments cancelled?
The Minister or his delegate may cancel the installments whenever it becomes clear that the rights of the public treasury are at risk of being lost.
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 70
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.
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 الأخي
- 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.