(By Integer | Trusted Market Entry & Interim Management in KSA)
Why Tax Compliance Matters from Day One
Setting up a company in Saudi Arabia is only half the journey — staying compliant is what keeps it running.
The Zakat, Tax and Customs Authority (ZATCA) oversees all taxation in the Kingdom, from income tax and VAT to withholding and excise duties. Its framework is transparent but highly procedural, and nearly every step requires someone physically present in KSA to act on your company’s behalf.
At Integer, we take the complexity out of compliance — ensuring that your entity is registered, represented, and operating within ZATCA’s requirements at all times.
1 Understanding ZATCA’s Role
ZATCA governs every aspect of corporate taxation, including:
- Corporate Income Tax for foreign-owned entities
- Zakat for Saudi and GCC ownership portions
- Value Added Tax (VAT) at 15 %
- Withholding Tax on cross-border payments
- Excise and Customs Duties for relevant industries
Each registration, filing, and submission must be signed and approved through an authorised signatory registered locally.
Without one, filings cannot proceed, and systems such as the ZATCA portal remain inactive.
Integer provides authorised representation — so your filings, payments, and communications with ZATCA are executed correctly and on time.
2 Corporate Tax and Zakat — Knowing the Difference
Many new investors misinterpret how Saudi tax applies to ownership structure.
- Corporate Income Tax (20 %) applies to the foreign ownership share.
- Zakat (2.5 %) applies to the Saudi / GCC ownership share.
Mixed-ownership companies pay both, in proportion.
Integer ensures your business is accurately classified from the start, preventing double taxation or costly corrections later.
3 VAT Registration and Reporting
Any entity exceeding SAR 375,000 in annual turnover must register for VAT.
Key requirements include:
- Charging VAT on taxable supplies
- Issuing compliant invoices
- Filing monthly / quarterly VAT returns
- Maintaining digital accounting records
Because ZATCA filings can only be validated by an authorised signatory in KSA, Integer’s Interim GM or Nominee service ensures immediate filing capability even before your permanent team arrives.
Your business can issue invoices, claim input VAT, and meet reporting deadlines without interruption.
4 Withholding Tax and Cross-Border Transactions
Payments to foreign suppliers — service fees, royalties, or interest — often trigger withholding tax obligations (5 % to 20 %).
Incorrect classification or late submission can result in heavy penalties.
Integer reviews your contracts, applies the correct rates, and files withholding reports under our authorised signatory role, keeping every transaction compliant and defensible.
5 Audit and Record-Keeping Requirements
ZATCA mandates audited financial statements prepared under SOCPA or IFRS and stored for ten years.
Auditors and tax officers require on-site authorised access to records.
Without a local General Manager or signatory to respond, even routine audit queries can escalate.
Integer coordinates directly with licensed auditors and ZATCA officials, ensuring prompt responses and complete, verified documentation.
6 The Cost of Non-Compliance
Missing a filing or payment deadline in KSA can be expensive and damaging.
Common penalties include:
- Late-filing fines
- Interest on underpaid tax
- VAT return discrepancies
- Suspension of the Commercial Registration
Without a local authorised representative, issues cannot be corrected quickly — fines accumulate, and operations may be frozen.
Integer prevents this by providing proactive monitoring, deadline tracking, and authorised representation to handle every submission immediately.
7 Why Authorised Local Representation Matters
Tax compliance in Saudi Arabia is not just an accounting task — it’s a legal function that must be executed inside the Kingdom.
A company registered abroad cannot file, pay, or appeal on ZATCA’s systems without a local authorised signatory.
Integer fills that role seamlessly through our Interim General Manager and Nominee services, giving your entity the legal presence and authority to:
- Sign and submit ZATCA filings
- Open and manage corporate bank accounts
- Respond to tax authority correspondence in real time
- Maintain operational continuity between setup and permanent management
Our framework gives you local execution with full international oversight — every action traceable, secure, and compliant.
Operate Confidently — Stay Compliant with Integer
Saudi Arabia’s tax environment rewards discipline and accountability.
Integer’s blend of local knowledge and structured governance keeps your business compliant, efficient, and ready for growth.
We manage the details — registrations, renewals, filings, and authorised representation — so you can focus on strategy and clients with complete confidence.
Contact Integer today to secure your authorised representation and ensure your tax and ZATCA compliance from day one.
Integer | www.integer15.com | info@integer15.com | +971 4501 2345
Trusted Market Entry and Interim Management in Saudi Arabia