Article 72 of the Saudi Income Tax Law
المادة 72 من نظام ضريبة الدخل · الفصل الثالث عشر: تحصيل الضرائب
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.
Official text (Arabic)
This article has not been amended since the law was issued.
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 حين استلامه هذا المبلغ.
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 72 explained in plain English
This article protects the taxpayer who paid more tax than he owed, and gives him two things:
- The right to a refund of the overpaid amount he paid.
- Compensation for delay of 1% of the overpaid amount for each thirty days.
When does the compensation start to accrue? Compensation does not start from the date of the overpayment, nor directly from the date of the claim, but after thirty days have passed from the taxpayer's claim for a refund, and it continues until the taxpayer actually receives the amount. Making the claim is therefore the starting point, and no compensation is due if the amount is refunded within the first thirty days of the claim.
Note the balance between this article and the provisions on late payment: just as a late taxpayer bears a delay fine, a taxpayer who overpaid receives compensation if the refund of his money is delayed. Article 71, which precedes it, concerns paying the amounts due from the taxpayer in installments, and the following Article 73 concerns seizing his property for non-payment.
It is useful for the taxpayer to keep proof of the date of his refund claim, because it is the basis for calculating the compensation. If his request is refused or his refund is delayed without justification, it is advisable to consult a lawyer specializing in tax cases.
Practical example
A company in Riyadh found it had paid SAR 100,000 more than its tax, and claimed a refund. If it receives the amount ninety days after its claim, no compensation is calculated for the first thirty days, and then compensation of 1% for each thirty days is calculated for the next sixty days, that is SAR 2,000.
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 72 of the Saudi Income Tax Law
Can I get back tax I overpaid?
Yes. A taxpayer who paid an amount in excess is entitled to a refund of the overpaid amount.
How much is the compensation for delay in refunding excess tax?
1% of the overpaid amount for each thirty days, starting after thirty days have passed from the taxpayer's claim and continuing until he receives the amount.
From when is refund compensation calculated?
It is calculated after thirty days have passed from the date of the taxpayer's claim for a refund, not from the date of the overpayment.
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 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 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.