Understanding the 120-Day Corporate Income Tax Return Deadline in Saudi Arabia (ZATCA Guide 2025)

PEAK bcs Uncategorized

Keywords: Saudi Arabia corporate income tax deadline, ZATCA 120-day rule, KSA corporate tax filing date, audited financial statements Saudi, CTDF transfer pricing Saudi, ZATCA payment SADAD, advance tax payments KSA, late payment penalty 1% every 30 days, corporate taxpayer Saudi Arabia.

Bottom line: In Saudi Arabia, corporate income tax (CIT) returns must be filed and the final tax must be paid within 120 days of your company’s fiscal year-end. This guide explains how to calculate the due date, what to submit on time (including audited financial statements and transfer pricing disclosures), penalties for missing the deadline, and practical compliance tips for corporate taxpayers operating in the Kingdom.

For Corporate Taxpayers in Saudi Arabia

The 120-Day Rule — What It Means

The rule in one line: Your annual corporate income tax return and final tax payment are due within 120 days after your fiscal year-end. For many calendar-year companies, that means a due date around 30 April of the following year.

  • File with: Zakat, Tax and Customs Authority (ZATCA) e-portal.
  • Pay via: SADAD bill generated on submission (online banking or ATM).
  • Include: audited financial statements (where applicable) and required transfer pricing disclosures (CTDF).

How to Calculate Your Company’s Exact Due Date

Start from the last day of your financial year and add 120 days. Here are common scenarios for 2025–2026:

Fiscal Year-End 120-Day Deadline Notes
31 Dec 2024 30 Apr 2025 Calendar-year entity filing in 2025.
31 Mar 2025 29 Jul 2025 Non-calendar financial year.
30 Jun 2025 28 Oct 2025 Ensure Q3 advance payments are reconciled.
30 Sep 2025 28 Jan 2026 Watch year-end audit timelines.
31 Dec 2025 30 Apr 2026 Next calendar-year filing.
Tip: If your deadline would fall on a weekend or bank holiday, plan to file and pay earlier so your SADAD payment clears in time.

What Must Be Submitted by the 120-Day Deadline

1) Corporate Income Tax Return (CIT)

Filed through the ZATCA portal under the corporate income tax section. Keep your trial balance, tax computations, and permanent files ready.

2) Audited Financial Statements

Companies owned by Saudis only, or by Saudis and non-Saudis, generally submit audited financial statements with the return.

3) Transfer Pricing Disclosure (CTDF)

If you have controlled transactions, the Disclosure Form of Controlled Transactions (CTDF) is submitted together with the annual return—within the same 120-day window.

4) Final Tax Payment

Your final CIT payable is due on the same 120-day timeline. The portal generates a SADAD bill; pay via online banking or ATM and retain the confirmation.

Advance Tax Payments and Cash-Flow Planning

  • Three advance payments are typically due on the last day of the 6th, 9th, and 12th months of the current tax year (based on prior-year liability), with an exception where the computed amount is below SAR 500,000.
  • Late payment of an advance installment can trigger a delay penalty of 1% of the amount due for every 30 days of delay.
  • Reconcile advances at year-end so your final SADAD bill only reflects the net payable (or a refund claim).
Pro move: Map your audit sign-off, CTDF preparation, and cash positioning backward from the 120-day date.

Penalties, Relief & 2025 Updates You Should Know

Late Payment & Late Filing — typical outcomes

  • Late payment of CIT (including advance installments) may attract a delay penalty of about 1% of the unpaid amount for every 30 days until settled.
  • Late filing and other compliance failures can trigger additional fines based on the unpaid tax and/or revenue metrics under Saudi rules.

Penalty relief initiative (Amnesty): ZATCA has periodically extended initiatives that waive or reduce fines across several tax types (including corporate income tax). Keep an eye on current announcements to see if relief applies to your period before you pay legacy penalties.

Step-by-Step: Filing & Paying Through ZATCA

  1. Log in to the ZATCA e-portal and open the corporate income tax section.
  2. Complete your return with final tax computations and attach your audited financial statements (as applicable).
  3. Attach CTDF if you have related-party transactions (transfer pricing disclosure).
  4. Submit to generate your SADAD bill.
  5. Pay via online banking or ATM using the SADAD invoice number. Save the payment proof.

Compliance Checklist for Saudi Corporate Taxpayers

  • Confirm your exact 120-day deadline from your year-end date.
  • Lock your audit timeline so financial statements are ready well before the due date.
  • Prepare and review CTDF and keep transfer pricing documentation available upon request.
  • Reconcile advance tax payments and withholding tax credits to avoid over/under-payment.
  • Generate and settle the SADAD bill early to avoid payment cut-off issues.
  • Retain all acknowledgments (return receipt, payment confirmation) in your permanent file.

FAQs on the 120-Day Deadline (KSA)

Does the 120-day rule also apply to Zakat payers?
Yes—zakat returns commonly follow the same 120-day post year-end filing window through the ZATCA portal.
Is the final tax payment due on the same date?
Yes. The final settlement is generally due within the same 120-day window. The portal generates a SADAD invoice upon submission.
What about advance tax installments?
Three equal advances are typically due in months 6, 9, and 12 of the current year (with an exception where the computed amount is below SAR 500,000). Late payment may trigger a 1% per 30-day delay penalty.
Do I have to file CTDF?
Where there are controlled transactions, the Disclosure Form of Controlled Transactions (CTDF) is due together with the annual return—within 120 days of year-end. Maintain master/local files and supporting analyses for audit readiness.
How do I pay?
Via SADAD using the bill number generated by the ZATCA e-service. Payment can be made through online banking or ATM, with SMS/email confirmations.

Helpful References (Official & Professional)

Disclaimer: This article is for general guidance only. Always confirm your exact deadlines and obligations on the ZATCA portal and consult a licensed Saudi tax advisor for tailored advice.

PEAK bcs

PEAK Business Consultancy Services (PEAK bcs) is a business consultancy firm founded in the year December 2017 . The project is managed by PEAK BCS VENTURES INDIA PRIVATE LIMITED. We are business consultants providing supporting services to business in Kerala. We here doing business supporting projects like business administration, virtual manager, accounting, taxation and other statutory compliance projects. Our key persons have good experience in these fields and also have good vision and ideas. Our team have strategic alliance with Chartered accountants, Company Secretaries, Cost Accountants, Legal firms, human resource, IT and ITES companies etc. We here work together with both technical and non technical persons for serving our clients better. We help new entrepreneurs to incorporate new business in India. Behind our success is Innovation, Dedication & Strategic alliance .

Leave a Reply

Your email address will not be published. Required fields are marked *