GTL Summary:

Article 76 establishes the penalties for a taxpayer's failure to adhere to the declaration filing provisions specified in Article 60(a, b, d, and f). A general fine of 1% of gross income is stipulated, capped at a maximum of 20,000 riyals. For late filing, a tiered penalty system replaces this fine if it results in a higher amount. This structure imposes a fine based on the unpaid tax, escalating with the delay: 5% for up to 30 days, 10% for 31-90 days, 20% for 91-365 days, and 25% for delays exceeding one year. 'Unpaid tax' is defined as the shortfall between the tax due and the tax paid by the legal deadline.

Document Type: Tax Law Article
Law: Income Tax Law (Royal Decree No M/1 - 21 Feb 2004)
Article Number: 76
Country: 🇸🇦 KSA
Location: Chapter 14 - Fines
Order: 76
Last updated at: 2025-12-19 09:23:03 UTC

Chapter 14 - Fines

Article 76 - Fines for Failure to File the Declaration

  1. A taxpayer not complying with the provisions of Article 60(a, b, d, and f) of this Law, shall be subject to a fine of 1% of its gross income, provided that the fine does not exceed 20,000 riyals.

  2. In case of failure to file the declaration within the prescribed time, the following fine shall be imposed in lieu of the fine stipulated under paragraph (a) of this Article, if the fine under paragraph (a) is less than the amount specified under this paragraph:

    1. 5% of the unpaid tax if the delay does not exceed 30 days of the date specified by law.

    2. 10% of the unpaid tax if the delay is more than 30 days and less than 90 days of the date specified by law.

    3. 20% of the unpaid tax if the delay is more than 90 days and less than 365 days of the date specified by law.

    4. 25% of the unpaid tax if the delay exceeds 365 days of the date specified by law.

  3. Unpaid tax shall mean the difference between the amount of tax due under this Law and the amount paid on the date specified by law under Article 60(b) of this Law.

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Article 75 - Seizure of Funds Due to the Taxpayer
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Article 77 - Delay and Fraud Fines
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