GTL Summary:

Article 73 grants the Department the authority to seize a taxpayer's movable and immovable properties for failure to pay due tax by the specified deadlines, in compliance with Sharia. The Department must provide a 20-day notice to the taxpayer before commencing seizure procedures. This article obligates third parties, such as banks and financial institutions, holding the taxpayer's assets to deliver them upon request. Furthermore, banks must freeze accounts upon receiving a seizure notice. Non-compliance by a third party results in a liability equal to the value of the properties held, up to the seizure amount. A key exemption is provided for the taxpayer's tools of trade and personal effects, up to a maximum value of SAR 300,000.

Document Type: Tax Law Article
Law: Income Tax Law (Royal Decree No M/1 - 21 Feb 2004)
Article Number: 73
Country: 🇸🇦 KSA
Location: Chapter 13 - Tax Collection
Order: 73
Last updated at: 2025-12-19 09:23:03 UTC

Chapter 13 - Tax Collection

Article 73 - Seizure of the Taxpayer's Properties

  1. If a taxpayer fails to pay the tax due by the dates specified by law, the Department may seize the taxpayer's movable and immovable properties as allowed by Sharia. The Department may proceed with the procedures of seizure after the passage of 20 days from the taxpayer's receipt of the Department's notice of its intention of seizure.

  2. Any person, including banks and financial institutions, holding in possession a seized asset shall deliver the asset to the Department upon its request.

  3. A bank or financial institution shall refrain from allowing withdrawals or other payments from the taxpayer's bank account after receiving notice of the Department's intention to seize the taxpayer's account.

  4. A person not complying with the provisions of paragraphs (b) and (c) of this Article shall be obligated to pay the Department an amount equal to the value of the properties in its possession, not exceeding the amount for which the seizure was made.

  5. Tools used by the taxpayer for its trade and personal effects and furnishings are exempt from seizure, with a maximum limit not exceeding 300,000 riyals.

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Article 72 - Refund of Overpayment
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Article 74 - Sale of Seized Property
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