Article 79 of the Saudi Income Tax Law
المادة 79 من نظام ضريبة الدخل · الفصل الخامس عشر: صلاحيات الوزير
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.
Official text (Arabic)
This article has not been amended since the law was issued.
للوزير الصلاحيات الآتية :
أ - إصدار اللائحة التنفيذية لهذا النظام.
ب - إصدار التعليمات واتخاذ الإجراءات التي يراها ضرورية لوضع هذا النظام موضع التنفيذ .
ج - تعديل المجموعات ونسب الاستهلاك الواردة في المادة السابعة عشرة من هذا النظام.
د - إسقاط دين الضريبة والغرامات متى توفرت أسباب استحالة تحصيلها ، وتحدد اللائحة الحالات التي يستحيل معها التحصيل .
هـ - منح مكافآت بناء على توصيات مدير عام المصلحة للموظفين المتميزين في أداء أعمالهم ، وتحدد اللائحة شروط وضوابط منح هذه المكافأة .
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 79 explained in plain English
This article gathers the powers the Law gives to the Minister, who is the Minister of Finance as defined in the Law:
- Issuing the Implementing Regulations of the Law, to which the Law refers many details.
- Issuing instructions and taking the measures he considers necessary to put the Law into effect.
- Amending the depreciation groups and rates in Article 17. In the current text of Article 17 these rates are: fixed buildings 5%, mobile industrial and agricultural buildings 10%, factories, machines, devices, software and equipment including passenger and freight vehicles 25%, geological survey, drilling and exploration expenses 20%, and other depreciable assets 10%. These rates may therefore be amended by decision of the Minister.
- Waiving tax debt and fines where there are grounds that make collecting them impossible, with the Regulations specifying the cases in which collection is impossible. The waiver here is tied to impossibility of collection, not merely to the taxpayer's request.
- Awarding bonuses to employees who excel in performing their work, on the recommendation of the Director General of the Department, with the Regulations setting their conditions and controls.
This article follows Article 78 on certified accountants, and precedes Article 80 on the date the Law takes effect. Since this article refers many practical details to the Regulations, it is important to refer to the text of the Regulations in force, and where needed it is advisable to consult a lawyer specializing in tax cases.
Practical example
A company in Dammam relies on the 25% rate in Article 17 to calculate depreciation on its machines. If the Minister of Finance issues a decision amending the depreciation rates under this article, the company must take the amended rate into account in its tax accounts from the date it takes effect.
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 79 of the Saudi Income Tax Law
Who issues the Implementing Regulations of the Income Tax Law?
The Minister, who is the Minister of Finance as defined in the Law.
Can the tax depreciation rates be amended?
Yes. The Minister has the power to amend the depreciation groups and rates in Article 17.
Can tax debt and fines be waived?
The Minister may waive them where there are grounds that make collecting them impossible, and the Regulations specify the cases in which collection is impossible.
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 76
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.
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 تتجا
- 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 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.