Everything You Need to Know About the Zakat & Tax Certificate to Grow Legally in Saudi
Mandatory for Tender Participation, License Renewals & Financial Credibility in Saudi Arabia
Why Is It Necessary?
The Zakat & Tax Certificate is an official document issued by the Zakat, Tax and Customs Authority (ZATCA). It verifies that your company is legally registered, has submitted the required returns, and has no outstanding financial obligations.
It is not just a formality—it is a legal requirement for many business operations in Saudi Arabia. Whether you’re bidding for government contracts or renewing your commercial registration, this certificate is non-negotiable.
Key scenarios where the certificate is required:
- Participating in government and semi-government tenders
- Renewing your CR (Commercial Registration)
- Applying for bank financing or facility extensions
- Proving tax residency in Saudi Arabia for cross-border contracts
- Enhancing corporate transparency and credibility in audits
Who Needs This Certificate?
| Company Type | ZATCA Compliance Required |
|---|---|
| 100% Saudi-Owned | Zakat only |
| Fully or Partially Foreign-Owned | Corporate Income Tax |
| Government Project Applicants | Zakat/Tax Certificate is mandatory |
Note: Regardless of your company size, if you are operating legally in Saudi Arabia, you are required to register with ZATCA and maintain compliance.
Where Is It Issued?
The certificate is issued digitally through the ZATCA online portal:
https://zatca.gov.sa
All businesses must create an account, file returns annually, and settle any dues. The entire process is conducted online, and the certificate can be downloaded after approval.
How to Obtain the Certificate – Step-by-Step
- Register with ZATCA
Log in to the ZATCA portal and register your business under the correct tax classification based on ownership. - Prepare and File Financial Returns
Submit your Zakat (for Saudi-owned) or Tax (for foreign-owned) return with your audited financials. - Settle All Outstanding Balances
Pay any dues, fines, or Zakat/tax amounts due. The certificate cannot be issued if your account is not cleared. - Request the Certificate Online
After filing and payment, apply for the certificate. It’s usually issued within 1–5 business days. - Download and Use for Compliance
The certificate is valid for 12 months. Ensure timely renewal to avoid interruptions in business.
Risks of Non-Compliance
- Disqualification from tenders
- Penalties or late fees from ZATCA
- Delays in CR renewal
- Business suspension risks in severe cases
- Negative financial audits and legal complications
Being proactive with your Zakat & Tax obligations ensures uninterrupted business operations and a competitive edge in both local and international markets.
Benefits of Having the Certificate
- Enables tender participation and contract bidding
- Boosts business credibility and compliance score
- Required for various licensing and banking needs
- Proves legal tax residency (useful in double taxation treaties)
- Avoids financial or legal penalties from ZATCA
Let Us Handle It for You
With Saudi regulations evolving frequently, it’s easy to miss a filing deadline or make a mistake in the calculation. That’s why we offer complete certificate solutions and ZATCA compliance services, including:
- Company registration with ZATCA
- Filing of Zakat or tax returns
- Application and renewal of certificates
- Expert support for multi-owner and foreign-entity structures
- Advisory on exemptions and eligible deductions
Get started with a free compliance check today.
We’ll help you secure your Zakat & Tax Certificate — hassle-free and on time