Saudi Arabia’s Zakat, Tax and Customs Authority (ZATCA) requires taxpayers to maintain accounting books and records in Arabic. Article 58 of Saudi Arabia’s tax law gives ZATCA the right to examine those books and records (including original invoices, day journals, general ledgers and inventory books). As part of a review, ZATCA may ask for a full audit trail of the income and expenses reported in taxpayers’ returns which should reconcile with trial balances extracted from general ledgers. ZATCA has the right under the tax law to use its own values to determine tax liabilities where it is unable to access the required information.
For more information on the requirement to maintain financial records in Saudi Arabia in Arabic, please download our flyer – or contact a member of our tax team.