Article 74 of the Saudi Income Tax Law
المادة 74 من نظام ضريبة الدخل · الفصل الثالث عشر: تحصيل الضرائب
The article regulates the Department's sale of seized property through the competent body, the order of payment from the price, and the suspension of sale while the assessment is under administrative or judicial review, except in two cases.
Official text (Arabic)
This article has not been amended since the law was issued.
أ - تبيع المصلحة وبواسطة الجهة المختصة الممتلكات المحجوزة وفقا لأحكام الحجز .
ب - يسدد من قيمة البيع أولا مصاريف الحجز والبيع ، ومن ثم الضريبة والغرامات ويعاد أي مبلغ باقٍ إلى المكلف .
ج - يعلق بيع ممتلكات المكلف خلال فترة المراجعة الإدارية أو القضائية للربط الذي تم على أساسه الحجز ، باستثناء :
1 - الممتلكات المعرضة للتلف.
2 - الممتلكات التي يطلب المكلف من المصلحة بيعها .
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 74 explained in plain English
After Article 73 allows the Department to seize the property of a taxpayer who has not paid, this article sets out what happens to that property:
- Sale: The Department sells the seized property through the competent body and in accordance with the rules on seizure.
- Order of payment from the sale price: First the costs of seizure and sale are paid, then the tax and fines, and whatever remains afterwards is returned to the taxpayer. The Department does not keep more than its due.
Protection of the objecting taxpayer: The sale of the taxpayer's property is suspended during the administrative or judicial review of the assessment on the basis of which the seizure was made. If the taxpayer disputes the assessment, his seized property is not sold until that review ends, and only two things are excepted from the suspension:
- Property liable to spoil, such as perishable goods.
- Property that the taxpayer himself asks the Department to sell.
It is followed by Article 75, which allows the Department, after the seizure is imposed, to require third parties who owe the taxpayer to pay directly to it. To learn the effect of an objection on your seized property, it is advisable to consult a lawyer specializing in tax cases.
Practical example
The Department seized the equipment of an establishment in Jeddah because of unpaid tax, but the establishment had objected to the assessment and the objection was still under review. In this case the sale of the equipment is suspended until the review ends, unless it is liable to spoil or the establishment asks for it to be sold. If it is sold later, the costs are paid, then the tax and fines, and the rest is returned to the establishment.
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 74 of the Saudi Income Tax Law
Does the Department sell property seized for tax?
Yes. It sells it through the competent body and in accordance with the rules on seizure.
What happens to any surplus after the seized property is sold?
First the costs of seizure and sale are paid, then the tax and fines, and any remaining amount is returned to the taxpayer.
Does an objection to the assessment stop the sale of seized property?
The sale is suspended during the administrative or judicial review of the assessment on which the seizure was based, except for property liable to spoil and what the taxpayer asks to be sold.
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.