Saudi corporate taxpayers must file and pay Withholding Tax (WHT) for income paid or accrued in July 2025 by 10 August 2025 (Sunday). Missing the 10-day rule can trigger surcharges and scrutiny. This practical guide gives finance and tax teams a month-end checklist, examples, penalty math, and controls to keep you compliant with ZATCA and protect cash flow.
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At-a-Glance: Your July 2025 WHT Obligations
Who must file?
- Saudi resident entities and permanent establishments paying non-residents.
- Payments typically in scope: royalties, service/management/technical fees, interest, dividends, rent.
What & when?
- Monthly WHT return and payment for July 2025 due by 10 Aug 2025.
- Count the 10-day clock from the month following the payment or accrual (per facts).
- Weekend caution: 10 Aug 2025 is a Sunday—plan cut-offs earlier.
Tip: If an invoice was recorded (accrued) in July but paid later, you may still owe WHT by 10 August—ensure classification and timing are documented.
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Execution Calendar for July → 10 August 2025
| Target Date | Task | Owner | Evidence to Archive |
|---|---|---|---|
| 5 Aug 2025 | Close July non-resident ledger; list all WHT-relevant invoices and payments. | AP + Tax | Reconciliation report; vendor list with payment types. |
| 6 Aug 2025 | Confirm classification (royalty, services, interest, dividends) and DTT eligibility. | Tax | Rate memo; treaty article mapping; residency/BO docs. |
| 7 Aug 2025 | Prepare WHT worksheets (gross-up if needed), internal review #1. | Tax | Calculation sheet; reviewer sign-off. |
| 8 Aug 2025 | Load return on ZATCA portal; schedule bank payment (respect cut-offs). | Tax + Treasury | Portal draft, payment instruction, approval trail. |
| 9 Aug 2025 | Final review & submission buffer day. | Controller | Filed return; payment confirmation; SWIFT/bank slip. |
| 10 Aug 2025 | Statutory DUE DATE—avoid same-day banking risk. | — | — |
Best practice: Aim to file by 9 Aug to avoid weekend/holiday processing delays.
Quick Reference: Common KSA WHT Rates
| Payment Type | Typical KSA WHT Rate | Notes |
|---|---|---|
| Dividends | 5% | Check treaty relief (if applicable) and beneficial ownership (BO). |
| Interest | 5% | Verify debt terms and arm’s-length pricing. |
| Royalties | 15% | Includes software/IP in many cases—classify carefully. |
| Services | 5%–20% | Depends on category; DTT may shift taxing right (PE tests). |
Treaties adjust rate eligibility—not the deadline. The July 2025 period remains due by 10 Aug 2025.
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Penalty Mechanics: Late Payment & Filing
Late payment surcharge (illustrative)
Unpaid WHT may attract a 1% surcharge for each 30 days (or part) after the due date until fully paid.
Example: SAR 200,000 due 10 Aug, paid 12 Sep ⇒ ~2 blocks ⇒ SAR 4,000 surcharge (illustrative).
Other exposures
- Under-withholding assessments (tax + surcharges).
- Service vs. royalty re-classification risks.
- Missing/expired treaty documents leading to denial of reduced rates.
Do not file late: batching multiple months magnifies surcharges and flags weak controls.
Quick Math: Gross-Up & Treaty Application
Gross-Up (Net Guarantee)
Gross = Net ÷ (1 − Rate)
WHT = (Net × Rate) ÷ (1 − Rate)
Treaty Rate Flow
Classify fee → map to treaty article → verify TRC + BO + LoB → apply reduced rate or over-withhold and support refund.
Checklist to Apply by 9 Aug
- TRC valid for 2025 period.
- BO declaration and structure chart on file.
- PE analysis completed (if services).
- Rate memo approved; portal draft ready.
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FAQs for July 2025 Filing (Due 10 Aug 2025)
What if we paid but didn’t accrue in July?
Track both accrual and payment. The obligation is tied to the underlying facts—document your policy and apply consistently.
Day 10 is a Sunday—does the deadline shift?
Plan to file/pay before the weekend to avoid bank and portal timing risks. Internal target: submit by 9 Aug 2025.
Can we amend a July return later?
Amendments are generally possible; pay any shortfall immediately to minimize surcharges and retain evidence in an archive pack.
Does treaty relief change the deadline?
No. Treaties can reduce the rate but not the due date. July 2025 remains due by 10 Aug 2025.
Action Plan for Saudi CFOs & Tax Managers
- Publish a July→August WHT calendar with internal milestones (Aug 6/8/9).
- Run a vendor treaty sweep—confirm TRCs/BO/LoB for UK, US, EU counterparties.
- Automate ERP alerts for non-resident invoices posted in July.
- Archive a monthly evidence pack per vendor (contract excerpt, TRC, BO, rate memo, calculations, filing receipts).
Need a penalty-proof WHT playbook for August 10? Talk to us.
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Work With Us
We help Saudi corporates design robust WHT processes—classification, treaty validation, filing calendars, reconciliations—so you never miss the 10 August 2025 deadline or any month thereafter. For collaborations, sponsored placements, or guest posting on Saudi corporate tax topics, email [email protected].
