In recent years, Saudi Arabia’s tax landscape has evolved significantly, driven by economic diversification and regulatory modernization under Vision 2030. As a result, businesses—whether local or foreign—must navigate increasingly complex tax frameworks, including Zakat, corporate income tax, VAT, excise tax, and withholding tax.
At Nax Law, our experienced tax lawyers in Saudi Arabia provide expert legal guidance to ensure full compliance with local tax laws while optimizing the tax position of our clients. In this article, we outline the top legal services we offer and how they can help businesses operate securely and efficiently in Saudi Arabia.
The complexity of the Saudi tax system
Unlike many countries, Saudi Arabia applies a dual tax system:
- Zakat for Saudi and GCC-owned entities.
- Corporate income tax for foreign-owned businesses.
In addition, the Zakat, Tax and Customs Authority (ZATCA) enforces regulations on VAT, excise tax, withholding tax, and transfer pricing—each with specific rules, deadlines, and documentation requirements. Failure to comply may result in audits, penalties, or reputational damage.
That’s why legal guidance from specialized tax attorneys in Saudi Arabia is not only advisable—it’s essential.
Top tax lawyer services we provide in Saudi Arabia
1. Corporate tax planning and compliance
Our lawyers help companies:
- Understand applicable tax obligations (Zakat vs. corporate tax).
- Structure operations to minimize tax liabilities.
- Prepare and submit tax returns correctly and on time.
- Avoid penalties and audits from ZATCA.
Whether you’re launching a joint venture or expanding a subsidiary, we ensure your corporate structure is tax-efficient and fully compliant.
2. Zakat advisory and dispute resolution
Zakat remains a core obligation for Saudi-owned businesses. We offer:
- Guidance on calculating Zakat according to approved accounting standards.
- Assistance with Zakat return preparation.
- Legal representation in Zakat-related audits or disputes.
If your company faces a disagreement with ZATCA on Zakat assessment, we act swiftly to defend your interests and negotiate favorable outcomes.
3. VAT compliance and electronic invoicing
Saudi Arabia enforces strict VAT rules at a rate of 15%, along with mandatory e-invoicing (FATOORA). We assist with:
- VAT registration and return filing.
- Designing compliant invoicing systems.
- Handling VAT audits or challenges by ZATCA.
Our team also helps identify VAT exemptions and recoverable input VAT to improve your company’s cash flow.
4. Excise tax advisory
For businesses dealing in tobacco, sugary drinks, or energy beverages, excise tax applies at higher rates. We offer:
- Clarification on product classification.
- Compliance with excise tax filing and reporting.
- Support during inspections and audits.
5. Transfer pricing and documentation
Saudi Arabia follows OECD-aligned transfer pricing regulations, requiring:
- Local file, master file, and Country-by-Country Reports (CbCR).
- Disclosure forms and documentation aligned with arm’s length principles.
We ensure your related-party transactions are well-documented and compliant, minimizing audit risk.
6. Withholding tax advice
Payments to foreign entities may be subject to withholding tax (WHT) between 5% and 20%, depending on the nature of the transaction. Our lawyers:
- Review contracts to assess WHT exposure.
- Structure payments to reduce tax leakage.
- Help apply for treaty benefits or refunds, where applicable.
7. Tax audit defense and litigation
If your company is selected for a tax audit or receives a dispute notice from ZATCA, we:
- Review the legal basis of the claims.
- Represent your company before tax appeal committees.
- Negotiate settlements and minimize financial exposure.
Our deep understanding of Saudi tax law ensures that you are well-defended at every stage.
Why choose Nax Law for your tax legal needs in Saudi Arabia?
- Expertise in Saudi tax law
Our team includes lawyers with deep knowledge of ZATCA regulations and experience across various industries, from oil and gas to tech and retail. - Dual-system understanding (Zakat & Corporate Tax)
We offer specialized advice for both tax frameworks, helping mixed-ownership companies navigate their obligations accurately. - Multinational client experience
We advise international companies with operations in Saudi Arabia on cross-border tax issues, structuring, and treaty applications. - Strategic, business-aligned solutions
We go beyond compliance to offer tax strategies aligned with your operational and commercial goals. - Dispute resolution success
Our proven track record in managing tax disputes ensures you have experienced legal defense when it matters most.
