Frequently Asked Questions

Within 120 days of the end of the financial year. For a company with a 31 December year end, that is 30 April.

After sixty days without an objection being filed, or on a decision of the dispute committees rejecting the objection — under Article 117 of the Implementing Regulations for Zakat Collection.

The zakat base is built from total assets after adding specified items and deducting others under the Regulations. It is neither net profit nor equity, which is why zakat can be due from an entity that made a loss.

Registration is mandatory above SAR 375,000 of annual revenue, and voluntary between SAR 187,500 and SAR 375,000.

Wave 25 targets those whose VAT-subject revenues exceeded SAR 187,500 in any of 2022, 2023, 2024 or 2025, with an integration deadline of 1 February 2027. Exceeding the threshold in a single year is sufficient.

It begins with scheduling what has not been filed and preparing it from the books rather than from estimates. The fines cancellation initiative running to 31 December 2026 makes regularising now materially cheaper, subject to being registered, filing all returns and paying the full principal.

Within the first ten days of the month following the month of payment. Late payment carries a penalty of 1% of the unpaid tax for every thirty days.

By default yes. The exemption covers micro and small enterprises meeting two of three criteria: revenue not exceeding SAR 10 million, assets not exceeding SAR 10 million, and no more than 49 employees. It is lost if the company is listed, issues debt instruments, or a partner holding the prescribed percentage requests an appointment.

Within six months of the end of the financial year, through the Qawaem platform. This period applies to all company types.

Before the financial year ends, or early in the following year. The auditor must be given access to records at least 45 days before the general assembly, the assembly meets within six months of year end, and filing falls within that same period.

No. The opinion remains unmodified; the auditor is drawing attention to a matter already properly disclosed. Reading it as a qualification is among the most common misunderstandings of audit reports.

An adverse opinion means the auditor examined the figures and found them wrong in a pervasive way. A disclaimer means sufficient evidence could not be obtained to reach an opinion at all. The first is a judgement on the statements, the second on the scope of work.

Yes, with opening balances addressed first. Where documentation for prior periods is unavailable, the effect on the report is stated explicitly.

No. The company remains obliged to prepare and file, submitting in place of the auditor report a declaration that it is not required to appoint one.

The manager must call the partners to a meeting within sixty days of becoming aware, to put the matter to them. Automatic dissolution by operation of law was abolished under the Companies Law in force since 19 January 2023.

Not in the form required under the repealed law. Under the law in force, the creation of reserves is governed by the company constitutional documents and falls to the general assembly.

At least once during the six months following the end of the financial year.

The corporate governance regulations for listed companies do not apply by virtue of listing, but the Companies Law obligations apply to every company. In practice the driver is usually need rather than compulsion: admitting a partner, separating ownership from management, or a counterparty requirement.

Secure the evidence first: a backup of the accounting system, access and authorisation logs, and complete bank statements. Then restrict authorities quietly and engage an independent professional firm. Avoid confronting the employee beforehand — it is the single largest cause of evidence loss.

Not necessarily. It relies on sampling at a given level of materiality, whereas manipulation may be small in value or concealed through collusion.

No. The court holds the authority to adopt it in whole, in part, or not at all.

Relying on a document from one party without allowing the other to respond, failing to state the source of a material figure, blurring the established with the estimated, exceeding the terms of reference, expressing a legal opinion, and an inability to recompute the result from the attached schedules.

It issues through the LCGPA platform after a certified public accountant licensed and accredited with the Authority performs agreed-upon verification procedures. A general licence to practise is not sufficient on its own.

There is no single general statutory minimum. The required minimum is read from the terms and specifications document of each individual tender.

No. It is computed from a completed year and cannot be improved retrospectively — only documented correctly, which does raise the evidenced percentage where items are genuinely local but undocumented.

No, that would conflict with the external auditor independence. We likewise do not combine bookkeeping with auditing the same books for one client.

Yes. We prepare reports and governance documents in Arabic and English where required.

Yes, under the non-profit standards issued by SOCPA.