Managing Withholding Tax in Saudi Arabia
The Saudi Tax Agency reminded entities of the April 10, 2026, deadline for filing March 2026 withholding tax declarations (affecting payments to non-residents); late payments incur penalties. This is a routine filing reminder but could affect expat businesses or employers of foreigners.
Managing Withholding Tax in Saudi Arabia
If you are a remote worker or business owner operating within Saudi Arabia, staying on top of monthly tax obligations is a routine but vital part of your workflow. The Zakat, Tax and Customs Authority (ZATCA) requires all resident entities to file declarations for Withholding Tax (WHT) on payments made to non-residents.
This policy applies to various transactions, including service fees, royalties, and dividends paid to individuals or companies that do not have a permanent establishment in the Kingdom. For the month of March, the deadline to file these declarations and remit the tax through the ZATCA portal is April 10.
Who it affects
The primary responsibility lies with Saudi-resident businesses and employers. However, this affects the nomad community in two specific ways:
- Service Providers: If you are a digital nomad providing services to a Saudi company from abroad, your payer is legally required to withhold a percentage of your fee.
- Expat Entrepreneurs: If you have established a business entity in Saudi Arabia and hire foreign contractors, you are responsible for filing these monthly declarations.
- Remote Employers: Anyone employing staff outside the Kingdom while resident in Saudi Arabia must ensure they are compliant with Article 68 of the Income Tax Law.
What to do
To stay compliant and avoid a 1% penalty for every 30 days of delay, ensure all March payments are logged and declared by the 10th of April. Filings must be submitted electronically via the official ZATCA website.
If you are a freelancer receiving payments, confirm with your Saudi clients that the tax has been handled to prevent unexpected deductions or payment delays. You can find more nomad news regarding regional financial regulations on our site.
Read our full Saudi Arabia guide for the complete picture.