Who files a mixed return?
A Saudi-resident company owned by Saudi or GCC shareholders together with non-Saudi shareholders. Obligations are split by ownership: the Saudi/GCC share is subject to zakat, and the non-Saudi share to income tax.
How is each part calculated?
| Share | Regime | Basis |
|---|---|---|
| Saudi & GCC | Zakat (2.5% per Hijri year) | Zakat base |
| Non-Saudi | Income tax (20%) | Adjusted net profit |
It is one return but two very different computations: zakat is levied on the base (equity and long-term financing less long-term assets), while income tax is levied on profit after tax adjustments.
What needs particular attention?
- Year-end ownership: any change in ownership during the year directly affects how the liability is split.
- Tax depreciation: calculated by statutory asset groups and rates, not accounting depreciation.
- Non-deductible expenses: such as certain provisions and undocumented expenses, are added back.
- Advance payments: may be due during the year on the taxable portion.
Deadline
Within 120 days of the financial year-end — 30 April for a 31 December year-end.
Reference: laws and regulations published by ZATCA: zatca.gov.sa