A glossary of the terms that recur in correspondence with the Zakat, Tax and Customs Authority, in audit reports, and in governance documents — with precise rather than simplified definitions. Each entry reflects the meaning as actually used in professional practice in Saudi Arabia, not a literal translation.
Contents
Zakat and tax
| Term | Arabic | Definition |
|---|---|---|
| Zakat base | الوعاء الزكوي | The amount on which zakat is computed, built from total assets after adding specified items and deducting others under the Implementing Regulations for Zakat Collection. It is neither net profit nor equity. |
| Deemed base | الوعاء التقديري | A base estimated by the Authority where the taxpayer lacks sufficient books and documentation. The way out is producing accounting records that move the case to actual computation. |
| Assessment | الربط | The Authority’s determination of zakat or tax due. It becomes final after sixty days without objection, or on a decision of the dispute committees rejecting the objection. |
| Zakat return | الإقرار الزكوي | Filed with the Authority within 120 days of the end of the financial year. |
| Zakat certificate | شهادة الزكاة | A certificate issued by the Authority evidencing the taxpayer’s position, normally required in government tenders and on renewal of banking facilities. |
| Withholding tax | ضريبة الاستقطاع | Withheld from payments to non-residents and remitted within the first ten days of the following month. The rate varies with how the payment is characterised. |
| Value Added Tax | ضريبة القيمة المضافة | An indirect tax at 15% since 1 July 2020. Mandatory registration above SAR 375,000; voluntary above SAR 187,500. |
| E-invoicing | الفوترة الإلكترونية | Two phases: generation and storage from 4 December 2021 for all, and integration with the FATOORA platform from 1 January 2023 in waves by taxpayer group. |
| Dispute committees | لجان الفصل | Where zakat and tax disputes are heard after objection, organised by the General Secretariat of Tax Committees, with an appeal tier. |
Auditing
| Term | Arabic | Definition |
|---|---|---|
| Auditor | مراجع الحسابات | A certified public accountant licensed to practise in the Kingdom, appointed to examine the financial statements and express an opinion on them. |
| Unmodified opinion | الرأي غير المعدَّل | Commonly called a “clean opinion”: the statements are fairly presented in all material respects under the applicable framework. |
| Qualified opinion | الرأي المتحفظ | Issued where there is a material but not pervasive misstatement, or an inability to obtain sufficient evidence on a material but not pervasive matter. |
| Adverse opinion | الرأي المعارض | Issued where there is a material and pervasive misstatement. The most severe form of opinion. |
| Disclaimer of opinion | الامتناع عن إبداء الرأي | Issued where sufficient evidence could not be obtained on a material and pervasive matter. A judgement on the scope of work, not on the correctness of the statements. |
| Emphasis of matter | فقرة لفت الانتباه | A paragraph drawing attention to a matter properly disclosed that the auditor considers fundamental to understanding the statements. The opinion remains unmodified — it is not a qualification. |
| Key audit matters | الأمور الرئيسة للمراجعة | Matters of most significance in the audit of the period in the auditor’s professional judgement, presented in the reports of listed entities. Not a qualification. |
| Going concern | مبدأ الاستمرارية | The assumption that the entity continues in operation. Where significant doubt exists and disclosure is adequate, the auditor includes a separate section and the opinion remains unmodified. |
| Materiality | الأهمية النسبية | The threshold of misstatement expected to influence users’ decisions. It determines the scope of audit procedures. |
| Pervasive | منتشر | An effect not confined to specific items, or representing a substantial proportion of the statements, or where the related disclosure is fundamental to understanding. |
| Limited review | الفحص المحدود | An assurance engagement below an audit, typically for interim statements, producing a conclusion rather than an opinion. |
| Agreed-upon procedures | الإجراءات المتفق عليها | An engagement performing procedures agreed in advance and reporting findings without expressing an opinion. The local content certificate rests on this. |
| Management letter | خطاب الإدارة | A letter to management setting out internal control observations noted during the audit. Not part of the report. |
Financial statements and frameworks
| Term | Arabic | Definition |
|---|---|---|
| Statement of financial position | قائمة المركز المالي | Formerly the “balance sheet”: assets, liabilities and equity at a given date. |
| Notes to the financial statements | الإيضاحات المتممة | An integral part of the statements, containing accounting policies, detail and disclosures. Most disputes are settled here rather than in the figures. |
| Opening balances | الأرصدة الافتتاحية | Balances at the start of the period, and the most common difficulty in a first-year audit following unaudited years. |
| Qawaem | منصة قوائم | The platform for filing financial statements electronically with the Saudi Business Center, within six months of year end. |
| IFRS as endorsed in KSA | المعايير المعتمدة في المملكة | IFRS Accounting Standards as endorsed by SOCPA, with additional disclosure requirements. The correct phrasing is “as endorsed in the Kingdom”, not “IFRS” without qualification. |
| IFRS for SMEs | معيار المنشآت الصغيرة والمتوسطة | The framework applied by entities without public accountability, with the option to apply the full standards. |
| Non-profit standards | معايير المنشآت غير الربحية | SOCPA standards for associations and foundations; their amendments apply to periods beginning on or after 1 January 2025. |
| ISQM 1 / ISQM 2 | معيارا إدارة الجودة | The quality management standards adopted in place of the former quality control standard with effect from 15 December 2022. |
Governance and the Companies Law
| Term | Arabic | Definition |
|---|---|---|
| Ordinary general assembly | الجمعية العامة العادية | Meets at least once during the six months following the end of the financial year and approves the financial statements. |
| Audit committee | لجنة المراجعة | A board committee overseeing the integrity of financial reporting and internal control, and the functional reporting line for internal audit. |
| Accumulated losses | الخسائر المتراكمة | Negative retained earnings. Reaching half of capital obliges the manager to call the partners within sixty days to put the matter to them. |
| Related parties | الأطراف ذات العلاقة | Parties with control or significant influence over the entity. Their transactions require disclosure, and the absence of documentation is a frequent cause of qualification. |
| Conflict of interest | تعارض المصالح | Where a personal interest of a member or officer intersects with the entity’s interest, requiring disclosure and abstention from voting. |
Local content
| Term | Arabic | Definition |
|---|---|---|
| Local content percentage | نسبة المحتوى المحلي | The proportion of the entity’s spending directed into the national economy relative to total spending, computed from approved financial statements. |
| Baseline certificate | شهادة أساس | Measures actual performance for a completed financial year. |
| Target certificate | شهادة استهداف | A contractual commitment to a future percentage during performance of a specific contract. |
Related detailed guides
- Types of auditor opinion
- Objecting to a ZATCA assessment
- The Saudi local content certificate
- Accumulated losses and half of capital
This glossary is general guidance. The authority for each term is the statutory text or professional standard in force at the time of application. Last updated: 14 September 2026.