Zakat & Tax Risk Index

Registration and Basic Compliance

The company is registered with ZATCA for all of its actual business activities Registration details (activity, address, and partners) have been updated within the last 12 months All of the company's branches and additional activities are registered with ZATCA

Filing and Payment Compliance

Zakat and tax returns are always filed by their statutory deadlines without delay There are no overdue zakat or tax returns that have not yet been filed The company has a consistent record of paying its zakat and tax dues without material delay Return figures are reviewed and reconciled with the accounting books before every filing

Penalties, Claims and Zakat/Tax Assessments

There are no outstanding unpaid zakat or tax penalties There are no additional zakat or tax assessments outstanding that have not been settled No previous claim or assessment has resulted in an unexpected material difference The zakat base is calculated accurately from the zakatable assets and equity and is reviewed periodically

Objections and Disputes

There are no pending objections or disputes before the zakat and tax objection committees Objections filed in the past have achieved a high success rate There are no outstanding financial claims from ZATCA outside the scope of official assessments

VAT and E-invoicing (Fatoora)

All invoices are issued electronically in compliance with the applicable e-invoicing (Fatoora) phase requirements VAT is calculated correctly on all taxable sales without exception VAT returns are always filed by their statutory deadlines There is a correct, documented classification of exempt and zero-rated goods and services

Zakat

The zakat base is calculated and reviewed by a qualified specialist before the return is filed All asset and equity items are included in the zakat base with no incorrect exclusions

Withholding Tax and Income Tax

The company withholds tax on payments to non-residents whenever they fall due Withholding tax returns are filed by their statutory deadlines Income tax does not apply to the company's activity, or its income tax filings are complete where it applies

Accounting Records and Document Quality

An automated accounting system accurately tracks every transaction subject to zakat or tax Supporting documents are kept complete and organized for the statutory retention period There is a complete, documented separation between the owner's personal expenses and the company's expenses

Accounting Policies, Internal Controls and Archiving

The company has documented, formally approved accounting policies Regular periodic internal control reviews are performed on financial and tax processes

Audit Readiness, Future Risks and Team Quality

The company has not undergone a zakat or tax examination in the last three years The team responsible for the zakat and tax file has proven, specialized expertise The likelihood of new zakat or tax risks arising in the coming year is very low

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