Article 63 - Correction of Returns

If the Taxable Person submits a Tax Return to the Authority and later discovers an error that resulted in declaring an amount less than the net Tax due that should have been declared, they must notify the Authority within twenty (20) days from the date they became aware of the error, by correcting the Tax Return previously submitted to the Authority. ^[96]

If the Taxable Person submits a Tax Return to the Authority and later discovers an error that resulted in declaring an amount greater than the net Tax due that should have been declared, they may correct the error by including that amount — as a deduction — from the net Tax due within any subsequent Tax Return filed after discovering the error, subject to Paragraph 4 of this Article. ^[97]

Notwithstanding the provisions of Paragraph 1 of this Article, the Taxable Person may correct an error that results in a shortfall in the amount of net Tax due previously declared, where the net amount of such shortfall is less than fifteen thousand (15,000) Riyals, by adding that amount to the net Tax due declared in the Tax Return submitted to the Authority for the Tax Period in which the error was discovered.^[98]

No correction may be made for an error that resulted in declaring a net amount of Tax due greater than the Tax that should have been declared in respect of any Tax Period after the lapse of five (5) years from the end of the calendar year in which that Tax Period falls. ^[99]

Any correction filed with the Authority must provide the following minimum information:

1. the Tax Period or Tax Periods to which the Tax Returns being corrected relate,

2. the amount of Output Tax and Input Tax being corrected in respect of each Tax Period,

3. information explaining the reason for the error or incorrect information in the Tax Return.