Compliance Check

ZATCA is considered the Legislative entity that is responsible of collecting Zakat, taxes and customs fees. Preparing the zakat and taxes reports is a responsibility of the tax payer and he is obligated to calculating and uploading the report to ZATCA’s system and paying it. The entity has the right to review the taxpayer records, check the validity of the calculations, perform the necessary modifications and apply fines incase of discovering errors.

Keeping accurate financial records for all the financial transactions, even if this is not a requirement for financial compliance, is very important. These records is the backbone of the right financial management which provides many benefits to the entity for tracking the profits, losses and cashflows. It will also be the main reference to answer any inquires directed to the entity from the regulatory authorities.

The type of legal entity of the business affects the way the company operates and the compliance responsibilities associated with it. The legal entity also determines the size of the personal commitment. Companies are considered a separate legal entity from the owners, while establishments are an extension of the owner’s entity. Therefore, in the event of a debt or commercial obligation that the entity is unable to fulfill, the other party has the right to claim its rights from the owner’s personal property and assets.

We understand that your financial and tax compliance requirements may not be clear to you, or you may not know where to start. Therefore, we have created a short questionnaire that identifies the most important financial and tax requirements based on the type of your establishment and the activity you practice.