GTL Summary:

Under Article 58, taxpayers are mandated to maintain essential commercial books and accounting records in Arabic to ensure the precise determination of their tax liability. This obligation applies to all taxpayers, with the specific exception of those who do not possess a permanent establishment within the Kingdom. The Article further empowers the Department to disallow a deduction if the taxpayer fails, without a reasonable excuse, to produce the necessary documentation for an expense or provide sufficient evidence to support the legitimacy of their claim. This provision underscores the importance of proper record-keeping for substantiating tax positions in the Kingdom.

Document Type: Tax Law Article
Law: Income Tax Law (Royal Decree No M/1 - 21 Feb 2004)
Article Number: 58
Country: 🇸🇦 KSA
Location: Chapter 11 - General Provisions
Order: 58
Last updated at: 2025-12-19 09:23:03 UTC

Chapter 11 - General Provisions

Article 58 - Books and Records

A taxpayer, except for those that do not have a permanent establishment in the Kingdom, shall maintain the necessary commercial books and accounting records in Arabic for precise determination of the tax payable by it.
The Department retains the right not to allow a deduction if the taxpayer is unable without reasonable excuse to produce a document of the expense or evidence supporting the legitimacy of its claim for the deduction.

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