ZATCA: Zakat, Tax and Customs Authority

The Zakat, Tax and Customs Authority (ZATCA) is the Kingdom of Saudi Arabia's primary fiscal authority. It was formed by merging the General Authority of Zakat and Tax (GAZT) with the General Authority of Customs. ZATCA sets the rules, processes registrations, collects payments, and enforces compliance across every major tax category in the KSA. Its official portal is zatca.gov.sa.\n\nZATCA administers several distinct obligations that can apply to different types of taxpayers. Zakat is an Islamic levy applied to Saudi and GCC-national-owned businesses. Value Added Tax (VAT) applies to most goods and services supplied in the Kingdom. Corporate income tax applies to the share of profits attributable to foreign shareholders. Withholding Tax (WHT) is levied on payments made to non-residents - ZATCA requires establishments subject to WHT to submit withholding tax forms by set deadlines each month (for example, forms for March 2026 were due by 10 April 2026) via the zatca.gov.sa portal, with late payment penalties applying to missed filings.\n\nZATCA also periodically issues relief measures. The Minister of Finance has the authority to extend fine exemption initiatives, and ZATCA announces these through its official media centre. Businesses operating in Saudi Arabia should monitor zatca.gov.sa directly for current deadlines, rates, and any active relief programmes rather than relying on third-party summaries.

Expats working or running businesses in Saudi Arabia are directly affected by ZATCA's remit. Foreign shareholders in KSA-registered companies are subject to corporate income tax on their ownership share, and any business making payments to non-resident service providers must account for withholding tax and file the relevant forms on time to avoid penalties. Missing a monthly WHT deadline - even by one day - can trigger late payment charges under ZATCA's enforcement framework.\n\nExpats who are employees rather than business owners are less likely to interact with ZATCA directly, since Saudi Arabia does not levy personal income tax on employment income. However, if you hold a stake in any KSA entity, receive rental or investment income from Saudi sources, or your employer makes cross-border payments on your behalf, ZATCA obligations may arise. Consult a qualified cross-border tax adviser who is familiar with KSA regulations before assuming any exemption applies to your situation. This article is not tax advice.