Associated Accountants was established in 1989, is a leading service provider for assurance, Zakat & Tax and advisory services.
Zakat and Tax
Through our Membership with GGI, we have an access to excellent resources worldwide and employs staff of the highest caliber. Associated Accountants is the premier professional services firm in Saudi Arabia stands out from the crowd in this area for their comprehensive & in-depth understanding of GAZT’s Zakat Guide lines and tax code.
Statuary Zakat and tax declaration services
Our dedicated Zakat and tax team will assist you to comply with GAZT’s Zakat and tax guidelines and navigate your business to minimize its Zakat and tax liability by taking advantage of our comprehensive understanding to GAZT’s Zakat and Tax guidelines.
Our Zakat services are characterized as follows:
- Effective and appropriate preliminary Zakat & tax planning.
- Review agreements such as, sponsorship, distribution, agency license, franchise technical services & advice clients on possible tax exposures.
- Timely submission of Tax & Zakat returns and declarations.
- Representation before the GAZT and assistance in obtaining final tax assessments
- Representation of clients before GAZT objection & appeal committees and negotiating settlements
- Follow-up with GAZT for the purpose of resolving outstanding issues and obtaining the final tax certificates.
- Perform research to assist clients in situations where no clear Zakat & tax rules exist.
The exposures to withholding taxes ‘WHT’ have increasingly become a hassling subject to be addressed by many organizations doing business in Saudi Arabia. Generally any form of settlement of a foreign ‘non-resident’ services vendor or dividend payment to non-resident shareholders will attract withholding tax. WHT can be a tricky subject in a number of cases and the cost of non-compliance can be overwhelming to many companies
The WHT rates can vary depends on the services rendered, however the withholding tax rates defined by the General Authority of Zakat and Tax described hereunder:
- 15 Percent: Royalties, Payments against services to the head office or to a related party passenger card and cargo vehicles
- 20 percent: Management fees
- 5 Percent: Rent, consultancy or technical services, air tickets or airfreight or sea freight, international telecommunication services, dividend distribution, financial charges on loans, insurance or re-insurance installments
- 15 Percent: Any Other Payments
Capital Gain Tax “CGT”
Generally, Capital Gain Tax is triggered when non-Saudi shareholders realize a gain from selling their shares in the organization. Understanding how capital gains are taxed may help you refine your plans when exiting your organization. Our Tax team can assist you on minimizing the exposure of such taxes and ensures the compliance with GAZT’s regime.
Zakat and Tax advisory
Changing the tax environment has pushed many organizations to seek for tax planning and advisory services to mitigate any tax surprises. Associated Accountants has the calibre tax team to provide you with following:
- Studying the proposed organization's structure in the light of Saudi Arabia tax system
- Suggesting the most effective tax structure which is appropriate to the organization.
- Supervising the implementation of the proposed tax structure.
- advise you annually of your Zakat and tax declaration filing dates and current filing requirements;
- Keep you informed of all developments, which might affect your Zakat and tax position within the General Authority of Zakat and Tax (GAZT). We wish to point out that a number of current practices are not codified and are subject to interpretation by individual tax inspectors;
- Advise and liaise with your accounting department as to the preparation and filing of the Zakat and tax package;
- Assist you in the preparation of provisional and final Zakat and tax declarations including detailed schedules required in support thereof.
- Assist you in identifying tax risk exposure after reviewing certain contracts, agreements and transactions and means to mitigate those identified risks.
The provisions commonly known as the Foreign Account Tax Compliance Act (FATCA) became law in March 2010.
- FATCA targets tax non-compliance by U.S. taxpayers with foreign accounts.
- FATCA focuses on reporting:
- By U.S. taxpayers about certain foreign financial accounts and offshore assets.
- By foreign financial institutions about financial accounts held by U.S. taxpayers or foreign entities in which U.S. taxpayers hold a substantial ownership interest.
Associated Accountants has established a FATCA advisory service within its Zakat & Tax department. We have established our methodology through industry experience to comply with FATCA that is tailored to your case or business. Our office can lead the registration process (forms W9 and W-8s of FATCA) in accordance with Internal Revenue Service “IRS” codes for FFIs and individuals insuring the correct FATCA forms that are corresponding to your case. Nevertheless, we also are capable to take the initiative with you to fill and submit the FATCA tax reporting forms “form 1042” and informational return ‘Form 1042-S’ and form 8966 reporting related to US accounts identified by the end of December 31, 2014, which will be introduced on 2015.