Preliminary Objection Committees shall be formed to adjudicate tax disputes that arise between the Authority and taxpayers. Each Preliminary Objection Committee shall consist of a chairman and at least three members. The members of the committee must be specialised in accounting, law and taxation. At least one or them must be an employee from the Authority. The grades of the members should not be less than grade 10 or equivalent grade in accordance with Civil Service Regulations.

A Preliminary Objection Committee shall be reconstituted every four years provided that one member or more is (are) retained for an additional term or terms.

The Chairperson of the Committee shall inform both the Zakat, Tax and Customs Authority and the taxpayer of the date set by the Committee to hear their arguments and allow them to present any supporting documents. The notification must be accompanied by a copy of the memorandum submitted by the Authority regarding the objection. If the objecting taxpayer is a foreign entity with no representative in the Kingdom, the notification shall be delivered to the taxpayer through the Ministry of Foreign Affairs at least 90 days before the scheduled hearing.

If either party or both parties fail to attend the session, the Preliminary Objection Committee may issue its decision based on the facts and documents presented to it. The Committee may postpone the hearing for reasons it deems valid, up to two times at most.

Presence of majority of the Preliminary Objection Committee members, including the Chairman or his Deputy, is required to convene a session.

The Preliminary Objection Committee shall first examine the admissibility of the objection from a procedural standpoint, whether this pertains to its submission within the statutory deadline, legal authority of representation for each party, or the payment of tax due on items not subject to objection, before proceeding to examine the objection on substantive grounds.

The Preliminary Objection Committee issues its resolution by majority vote. In case of a tie, the side with which the Chairman votes shall win.

The amount of tax assessed in the Committee's decision shall not be less than the amount acknowledged by the taxpayer or their representative, nor shall it exceed the amount assessed by the Authority.

The Committee shall notify both the Authority and the taxpayer of its decision by a registered official letter or by any other means that provide receipt of delivery. The decision of the Preliminary Committee shall be deemed final unless either party appeals it within 60 days of receipt.

The Zakat and Income Authority must implement the Preliminary Committee's decision, and amend the assessment accordingly, and shall notify the taxpayer thereof, even if the decision has been appealed.

If the taxpayer wishes to appeal the decision of the Preliminary Objection Committee, the taxpayer has to comply with the following:

1. Payment of the tax liability due to the Authority as per the Preliminary Committee resolution, or submission of a bank guarantee for the full payable amount, valid for a period of not less than one year, automatically renewable, cashable after the final resolution at the exclusive discretion of the Department and compatible with the format approved by the Saudi Arabian Monetary Agency. This shall be a condition for the admissibility of the the appeal in terms of form.

2. Submission of a substantiated statement of appeal, along with any supporting documents, in addition to submission of proof of payment or a copy of the bank guarantee to the Appeal Committee, for the purpose of registering the appeal within the legally prescribed period.

3. The bank guarantee shall not be released nor cash payment refunded unless a final decision is issued on the dispute.