Corporate taxpayers in Saudi Arabia can now leverage ZATCA’s Risk Engine Insights to identify potential compliance risks before filing their tax, Zakat, or VAT returns. Using this advanced analytical tool helps reduce audit exposure, avoid penalties, and ensure your submission is accepted without delays.
📌 What is ZATCA’s Risk Engine?
The Risk Engine is an AI-driven system developed by the Zakat, Tax and Customs Authority (ZATCA) to assess tax return data and detect inconsistencies, anomalies, or non-compliance indicators. It uses advanced algorithms and cross-checks taxpayer data with other government and third-party records to flag potential red alerts before the return is processed.
By accessing these insights in advance, corporate taxpayers can proactively correct errors and submit a “clean” return, minimizing disputes and compliance risks.
Become Our Featured Tax Expert.
This premium ad space is reserved for one tax professional. Put your firm in the spotlight and reach qualified Saudi Arabia leads directly.
To claim this exclusive spot, contact us at [email protected].
✅ Step-by-Step Guide to Using Risk Engine Insights
- Log in to the ZATCA Portal: Access ZATCA’s E-Services using your corporate credentials.
- Navigate to ‘Risk Engine Insights’: From the dashboard, choose the “Pre-Filing Risk Check” option.
- Select the Return Type: Choose whether you’re filing a Corporate Income Tax, Zakat, or VAT return.
- Upload Draft Return Data: Import your draft return file for pre-assessment.
- Review Risk Alerts: The system will display potential issues, such as inconsistent figures, missing schedules, or unusual deductions.
- Access Recommended Fixes: ZATCA provides suggested corrective actions for each flagged item.
- Make Corrections: Update your draft return based on the recommendations and re-run the check to confirm a clean status.
- Submit the Final Return: Once all risks are cleared, proceed to file your return and retain proof of submission.
📅 When to Use the Risk Engine
It’s best to run a Risk Engine check at least one week before your filing deadline. This allows adequate time to address any flagged issues without the pressure of last-minute corrections.
⚠️ Common Issues Detected by the Risk Engine
- Mismatch between sales/revenue figures and VAT declarations.
- Inconsistencies between Zakat base and asset values.
- Omissions in withholding tax schedules.
- Excessive expense claims not supported by documentation.
- Incorrect application of exemptions or zero-rating.
💡 Best Practices for a Clean Return
- Always maintain proper documentation for all reported figures.
- Ensure all intercompany and cross-border transactions are fully disclosed.
- Check for updates to Saudi tax laws and ZATCA guidelines before filing.
- Run multiple risk checks for complex returns involving multiple schedules.
🏁 Conclusion
Using ZATCA’s Risk Engine Insights is one of the most effective ways for Saudi corporate taxpayers to prepare accurate, compliant, and dispute-free returns. Proactive use of this tool can significantly reduce the risk of audits, penalties, and assessment disputes, while improving your corporate tax governance.
