A taxpayer may request payment of payable amounts of tax and penalties in instalment according to the following:

1. A taxpayer should submit a written request to the Zakat, Tax and Customs Authority, stating the amount of tax liability, the respective financial period(s), reasons for inability to pay on time, justifications for the request, and a specific instalment plan proposal (number of instalments, instalment amount, and advance payment (if any)). The Department should consider the taxpayer's request and respond to it within 30 days.

2. The instalment period should not exceed the year(s) for which the accumulated tax is due.

3. The installments should not include any taxes and penalties withheld at source by the taxpayer and required to be remitted to the public treasury in accordance with Article 68 of the Law.

4. The instalment approval shall become void if a taxpayer fails to pay two consecutive instalments, or if it becomes clear that public treasury is vulnerable to loss. The taxpayer shall be notified of the cancellation of the instalment arrangement in an official letter from the Authority. In such case, the taxpayer shall immediately pay all amounts due in full.

A late payment penalty shall be imposed on the tax paid through instalments from the due date in accordance with Article 77(a), at a rate 1 percent of underpayment of tax.

The due tax shall be adjusted first from any amounts received from the taxpayer and then penalties. This provision also applies to other payments under the account.

The Director General of the Zakat, Tax and Customs Authority is authorised to approve payment in instalments of payable taxes and penalties that do not exceed one million Saudi Riyals.