AKCPA Journal
Zero fluff. Actionable guides on market entry, GRO/PRO, HR & payroll, zakat & tax, compliance with proven records of 750+ projects.
In Saudi Arabia, Corporate Income Tax (CIT) is administered by ZATCA and is generally calculated on a self-assessment basis for each fiscal year. In most standard cases, CIT is applied at a 20% rate to the taxpayer's taxable profit, starting from the financial statements and then adjusted to reflect what is deductible, non-deductible, or treated differently under KSA tax rules.
In Saudi Arabia, Zakat is administered by ZATCA and is generally prepared and filed on a self-assessment return-filing basis for each fiscal year. For entities that maintain accounting records, the Zakat base is commonly determined by building the base from sources of funds and then subtracting deductible assets, before applying the Zakat rate.
The government authority that administers business tax in the Kingdom of Saudi Arabia is the Zakat, Tax and Customs Authority (ZATCA). From a direct tax perspective, the KSA framework is built around two main regimes: Corporate Income Tax (CIT) and Zakat. In general, a taxpayer's profile is determined primarily by its ownership composition.