SME in Saudi Arabia
- tags
- ZATCA
SME in Saudi Arabia #
- Among the objectives of the Vision 2030 is increasing SME’s contribution to the GDP to 35%
HRH Crown Prince SMEs guidelines by ZATCA-1.pdf
TIN(Tax Identification Number) is a reference number for your enterprise at ZATCA that is automatically registered once your commercial registration is issued.
- Fiscal year of Saudi: January 1 to December 31
Revenue range #
SME range is between 3-200 million revenue year with average of SAR 2.4 million.
- 1.27 million SME in Saudi Arabia.
- More than 40,000 new businesses were launched in Saudi Arabia during the third quarter, with 43.3 percent of SMEs located in Riyadh.
VAT in KSA #
Freight Forwarders #
ref Shippers or goods. The Authority pointed out that through the last phase, Fright Forwarders Companies are allowed to obtain a license to practice the profession of customs clearance, to enable them to activate their role towards facilitating trade, in addition to their contribution to raising the efficiency of customs clearance operations and the logistics services provided
Through this step, the ZATCA aims to enable Freight Forwarders to provide distinguished logistical services that are compatible with its objectives towards strengthening the Kingdom’s position as a global logistics platform, by facilitating and developing customs procedures to achieve flexibility in the customs clearance process, in cooperation with all relevant authorities.
SME guidelines #
SMEs guidelines by ZATCA-1.pdf
Types of Taxes #
Excise Tax #
Imposed on types of goods that are harmful to public health and the environment
- From 50%-100%
VAT #
ZAKAT #
Enterprise should pay an annual zakat of 2.5% of the profit for each hijri year no later than 120 days after the end of zakat year.
Zakat return?
A form that allows you to submit your zakat-related information for a financial year with e-portal.
The are two methods to calculate ZAKAT due
- Estimated Basis
In this method, we calculate zakat due amount on an estimated method based on a number of data:
- sales disclosed in a VAT return and
- data disclosed in real state transactional tax
- Statutory accounts returns
In this method, we calculate zakat based on the financial data,
according to financial statements approved by a chartered accountant. In addition, zakat is paid within 120 days as of the end of the zakat year.
If you are among the zakat payers using the estimated method, you should pay after 12 months of the date of your commercial registration. The Zakat due amount and invoice number will be issued.
How to pay ZAKAT?
Filing an objection Before ZATCA
- if the objection is accepted the business will get the return.
- Cancellation of Zakat
OCR of Images #
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- Micro companies Small companies Medium companies have between have between have between 1-5 staff 6-49 staff 50-249 staff or revenue of or revenue between or revenue between SAR 0-3 SAR 3-40 SAR 40-200 million million million
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a doLh aolaall VAT Zakat VAT 01 . Excise Tax
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- X You are entitled to convert From To The estimated method the account method which calculates zakat according to your enterprise's financial statements.
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Zakat Payment Steps - Log into your account on the website by using the TIN. To obtain TIN click here Select the unpaid invoices - 1 You can pay your due zakat through (S2D mada Mada slaw SADAD SAR ATMS
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Identifystepsfor filing anobjectionbefore ZATCA Log into your account on our website L . Click "Returns of Zakat and Income Tax on Foreign Enterprises, II then click "Objections" 5 Select "Objection to Return Request" Fill out the request form 5 State your reasons for objection and attach supporting documents ofyour request You will receive a notification ofreceiving your request via SMS and e-mail
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You pay your zakat ZATCA audits and reviews the zakat due amount 2 SAR - auctais dyjiull UI datillg ailgall 3 Zakatis disbursedto social security beneficiaries. The zakat due amount tis transferred to the Ministry of Human Resources and Social Development ("HRDS"), I Deputyship for Social Security and Empowerment. -