Are you utilizing Microsoft Dynamics Business Central? Dealing with vendor complaints regarding withheld tax amounts? Look no further! Our Business Central Addon for Withholding Tax ensures compliance, penalty avoidance, and simplified tax computation. Accurately calculate withholding tax based on ZATCA’s rates, eliminating errors and saving valuable time.
Withholding Tax in Saudi Arabia (WHT) applies to a specific percentage of income earned by non-resident entities providing services and generating income within the country. Whether dealing with governmental, non-governmental, or semi-governmental establishments, all non-resident entities deriving Saudi Arabia-sourced income are subject to WHT. As per the Implementing Regulations of the Income Tax Law (ITL), the tax is imposed on the total amount paid to the non-resident entity, without considering expenses incurred or allowances/disallowances as deductions for such payment.
The withholding person must maintain records to demonstrate compliance with the withholding provisions, including beneficiary name, address, payment type, amount, and deductions, along with supporting documents for at least ten (10) years after payment. A monthly Withholding Tax return must be submitted by the withholding person within the first ten (10) days of the following month after making payment to the non-resident party. As per ZATCA, the withholding person, residing in KSA, must file the Withholding Tax return through its ZATCA portal. Additionally, an annual Withholding Tax return is required, due within 120 days of the year-end, and not later than 60 days for partnerships.
Novasoft is a Microsoft Gold & LS Retail Diamond Partner implementing Microsoft Dynamics business applications, LS Central on Dynamics 365 BC, Power Apps, Microsoft 365, and Azure. Novasoft helps retailers across UAE, KSA, USA & India migrates from legacy systems to intelligent cloud-based modern POS, retail, and ERP system. Our certified and experienced consultants provide best-in-class business solutions to customers, which indirectly shortens the project duration and improves quality.
