GTL Summary:

Article 70 of the KSA Income Tax Law requires a taxpayer to make three advance tax payments during a taxable year, due on or before the last day of the sixth, ninth, and twelfth months. The payment is calculated as 25% of the preceding year's tax liability less any tax withheld at source under Article 68. Paragraph (b) provides an exemption, stating that no advance payment is required if the calculated amount is less than 500,000 riyals. The Department has the authority to reduce these payments if the taxpayer's current income is substantially lower than the previous year's.

Document Type: Tax Law Article
Law: Income Tax Law (Royal Decree No M/1 - 21 Feb 2004)
Article Number: 70
Country: 🇸🇦 KSA
Location: Chapter 13 - Tax Collection
Order: 70
Last updated at: 2025-12-19 09:23:03 UTC

Chapter 13 - Tax Collection

Article 70 - Advance Payments of Tax

  1. Without prejudice to paragraph (b) of this Article, a taxpayer who realizes income in the taxable year shall pay three advance payments of tax on or prior to the last day of the sixth, ninth, and twelfth months of the taxable year. The amount of payment is calculated using the following equation:

    25% x (A – B) where:

    A = The taxpayer's tax for the preceding year according to its declaration.

    B = The amount of tax paid in the preceding year by withholding from the source in accordance with Article 68 of this Law.

  2. A taxpayer shall not be obligated to make advance payments under paragraph (a) of this Article, if the result of the above equation is less than 500,000 riyals.

  3. The Department has the power to reduce any of the payments due under this Article if it is convinced that the taxpayer's income for the taxable year, with the exception of the income of which tax is withheld from the source under Article 68 of this Law, shall be substantially less than the income of the preceding year.

  4. A payment made pursuant to this Article shall be considered an advanced payment against the taxpayer's total tax for the taxable year for which the payment was made.

  5. The provisions of this Law relating to the collection of tax and its mandatory procedures shall apply to advance payments of tax as they apply to the tax itself.

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Article 69 - Tax Payment
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