Article 76 of the Saudi Income Tax Law
المادة 76 من نظام ضريبة الدخل · الفصل الرابع عشر: الغرامات
The article imposes a fine of 1% of gross revenue, capped at SAR 20,000, for breaching the return provisions, and for late filing a fine of 5% to 25% of the unpaid tax where that is higher.
Official text (Arabic)
This article has not been amended since the law was issued.
أ - تفرض غرامة على المكلف الذي لا يتقيد بأحكام الفقرات ( أ ، ب ، د ، و) من المادة الستين من هذا النظام مقدارها واحد بالمائة (1%) من إجمالي إيراداته على ألا تتجاوز عشرين ألف (20.000) ريال .
ب - في حالة عدم تقديم الإقرار في الوقت المحدد ، تفرض الغرامة الآتية عوضا عن الغرامة الواردة في الفقرة (أ) من هذه المادة إذا كانت الغرامة بمقتضى الفقرة (أ) تقل عن المبلغ المحدد بمقتضى هذه الفقرة :
1 - خمسة بالمائة (5%) من الضريبة غير المسددة إذا لم يتجاوز التأخير ثلاثين يوما من الموعد النظامي .
2 - عشرة بالمائة (10%) من الضريبة غير المسددة إذا زاد التأخير عن ثلاثين يوما ولم يتجاوز تسعين يوما من الموعد النظامي .
3 - عشرون بالمائة (20%) من الضريبة غير المسددة إذا زاد التأخير عن تسعين يوما ولم يتجاوز ثلاثمائة وخمسة وستين يوما من الموعد النظامي .
4 - خمسة وعشرون بالمائة (25%) من الضريبة غير المسددة إذا زاد التأخير عن ثلاثمائة وخمسة وستين يوما من الموعد النظامي .
ج - تعني الضريبة غير المسددة الفرق بين مبلغ الضريبة المستحقة السداد بموجب هذا النظام ، والمبلغ المسدد في الموعد النظامي المحدد في الفقرة ( ب ) من المادة الستين من هذا النظام .
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 76 explained in plain English
This article penalizes a taxpayer who breaches the return obligations in Article 60, and rests on two fines:
1) The basic fine (paragraph a): 1% of the taxpayer's gross revenue, not exceeding SAR 20,000, imposed on whoever does not comply with paragraphs (a, b, d, f) of Article 60, which are: submitting the return on the approved form with the distinguishing number and paying the tax under it; submitting it within one hundred and twenty days of the end of the tax year; submitting a return for the short period within sixty days of ceasing the activity and notifying the Department; and a partnership submitting the information return on or before the sixtieth day after the end of its year.
2) The fine for late submission of the return (paragraph b): If the return is not submitted on time, the following is imposed instead of the basic fine where the basic fine is lower than it:
- 5% of the unpaid tax if the delay does not exceed 30 days.
- 10% if it exceeds 30 days but does not exceed 90 days.
- 20% if it exceeds 90 days but does not exceed 365 days.
- 25% if it exceeds 365 days.
The result is that the higher of the two fines applies to a late taxpayer.
Meaning of unpaid tax: It is the difference between the tax due under the Law and the amount paid by the statutory deadline set in paragraph (b) of Article 60.
It is followed by Article 77, which regulates fines for late payment and fraud. To assess the fine in a specific case, it is advisable to consult a lawyer specializing in tax cases.
Practical example
A company in Riyadh was 45 days late in submitting its return; its unpaid tax was SAR 400,000 and its gross revenue SAR 5,000,000. The basic fine of 1% of revenue comes to 50,000 but may not exceed SAR 20,000, while the late-filing fine is 10%, that is SAR 40,000, and since the basic fine is lower, a fine of SAR 40,000 is imposed.
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 76 of the Saudi Income Tax Law
What is the fine for not submitting the tax return?
1% of the taxpayer's gross revenue up to a maximum of SAR 20,000, replaced by the graduated late-filing fine if the latter is higher.
What are the rates of the fine for late submission of the return?
5% of the unpaid tax for up to 30 days, 10% for up to 90 days, 20% for up to 365 days, and 25% if the delay exceeds 365 days.
What is meant by unpaid tax?
The difference between the tax due under the Law and the amount paid by the statutory deadline set in paragraph (b) of Article 60.
Articles this article refers to
More articles on Income Tax Penalties
- 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 57
The article requires every person subject to income tax to register his activity before the end of his first fiscal year, excepts those subject only to final withholding, and imposes a fine of SAR 1,000 to 10,000.
أ - يجب على كل شخص خاضع للضريبة بموجب هذا النظام أن يقوم بتسجيل نشاطه لدى المصلحة قبل نهاية سنته المالية الأولى . ب - لا تنطبق أحكام هذه المادة على المكلفين الخ
- Article 77
The article imposes a delay fine of 1% of the unpaid tax for each thirty days, and a fine of 25% of the tax difference where untrue information is provided or fraud is committed with intent to evade.
أ - إضافة إلى الغرامات الواردة في المادة السادسة والسبعين من هذا النظام وفي الفقرة (ب) من هذه المادة ، على المكلف تسديد غرامة تأخير بواقع واحد بالمائة (1%) من ا
- Article 78
The article gives the Department the right to prosecute a certified accountant in court if it is proved that he submitted or certified incorrect statements contrary to generally accepted accounting principles with intent to help the taxpayer evade.
بما لا يتعارض مع نظام المحاسبين القانونيين ، للمصلحة الحق في ملاحقة أي محاسب قانوني قضائيا يثبت أنه قدم أو شهد على صحة بيانات غير صحيحة، وبما يشكل انتهاكا للمبا
- Article 79
The article sets out the Minister of Finance's powers to issue the Regulations and instructions, amend depreciation groups and rates, waive tax debt and fines where collection is impossible, and award bonuses to outstanding employees.
للوزير الصلاحيات الآتية : أ - إصدار اللائحة التنفيذية لهذا النظام. ب - إصدار التعليمات واتخاذ الإجراءات التي يراها ضرورية لوضع هذا النظام موضع التنفيذ . ج - تعد
- Article 80
The article provides that the Income Tax Law is to be published in the Official Gazette and take effect ninety days after the date of its publication.
أ - ينشر هذا النظام في الجريدة الرسمية ويعمل به بعد تسعين يوما من تاريخ نشره.
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.