Article 73 of the Saudi Income Tax Law
المادة 73 من نظام ضريبة الدخل · الفصل الثالث عشر: تحصيل الضرائب
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.
Official text (Arabic)
This article has not been amended since the law was issued.
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 في إجراءات الحجز بعد مرور عشرين يوما على استلام المكلف إشعارا منها بنية الحجز .
ب - على أي شخص ، بما في ذلك البنوك والمؤسسات المالية ، ممن في حوزته الأصل المحجوز تسليم الأصل إلى المصلحة عندما تطلب المصلحة ذلك.
ج - على البنك أو المؤسسة المالية الامتناع عن السماح بأي سحوبات أو دفعات أخرى من حساب المكلف بالبنك بعد تسلم البنك إشعارا بنية المصلحة الحجز على حسابه.
د - الشخص الذي لا يلتزم بأحكام الفقرتين ( ب ، ج ) من هذه المادة ، يلزم بسداد مبلغ للمصلحة يساوي قيمة الممتلكات التي كانت بحوزته بما لا يتجاوز المبلغ الذي تم الحجز من أجله .
هـ - الأدوات التي يستخدمها المكلف في تجارته ومتعلقاته وأثاثه الشخصي تستثنى من الحجز بحد أعلى لا يتجاوز ثلاثمائة ألف (300.000) ريال .
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 73 explained in plain English
This article gives the Department a means of collecting tax from a taxpayer who has not paid it by the dates set by law, namely seizing his property.
- Scope of seizure: the taxpayer's movable and immovable property that may be seized under Sharia.
- Prior notice: The Department proceeds with seizure only after twenty days have passed since the taxpayer received a notice from it of its intention to seize.
- Duty of the holder of the property: Any person holding the seized asset, including banks and financial institutions, must hand it over to the Department when it requests.
- Duty of banks: A bank or financial institution must prevent any withdrawals or payments from the taxpayer's account after receiving a notice of the Department's intention to seize the account.
- Penalty for non-cooperation: A person who breaches the duties to hand over or to prevent withdrawal must pay the Department an amount equal to the value of the property that was in his possession, not exceeding the amount for which the seizure was made.
- What is exempt from seizure: The taxpayer's tools used in his trade, his belongings and his personal furniture, up to a maximum of SAR 300,000.
This article is complemented by Article 74, which regulates the sale of seized property and the distribution of its proceeds. Article 72, which precedes it, regulates the opposite case, namely the taxpayer's refund of what he overpaid. If you receive a notice of intention to seize, it is advisable to consult a lawyer specializing in tax cases within the twenty-day period.
Practical example
A merchant in Dammam was late in paying tax due from him, and received a notice from the Department of its intention to seize. After twenty days pass without payment, the Department may proceed with the seizure, and a bank that has received the seizure notice on his account must prevent withdrawals from it, while his trade tools and personal furniture remain exempt up to SAR 300,000.
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 73 of the Saudi Income Tax Law
When may the Department seize a taxpayer's property?
If he does not pay the tax by the dates set by law, and it may proceed with the seizure after twenty days have passed since he received a notice of intention to seize.
Can a bank account be seized because of tax?
Yes. After receiving a notice of intention to seize the account, the bank must refuse to allow any withdrawals or payments from it.
What property may not be seized?
The tools the taxpayer uses in his trade, his belongings and his personal furniture, up to a maximum of SAR 300,000.
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 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
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.