Complete Guide to Issuing a Zakat and Income Tax Certificate in Saudi Arabia 2026
10 minutes ago
Are you struggling to print your Zakat and Income Tax Certificate despite settling all dues? Do you need help preparing accurate Zakat or tax returns? Looking for professional assistance to ensure full compliance with ZATCA regulations?
At HR360 Solutions, we provide comprehensive consulting services in Zakat and tax compliance across Riyadh and the Kingdom, including preparation and review of Zakat and tax returns, ZATCA follow-up, certificate issuance, objection resolution, and tax status correction. We help you avoid penalties and ensure uninterrupted business operations.
- Accurate preparation and review of Zakat and tax returns.
- Issuance of Final and Restricted Zakat and Income Tax Certificates.
- Resolving certificate suspension and visibility issues on the portal.
- Registration with ZATCA and e-invoicing setup.
- Tax consulting for foreign and mixed-ownership companies.
- Representation during ZATCA audits and objections.
Need help issuing your Zakat and Income Tax Certificate or correcting your tax status?
What Is a Zakat and Income Tax Certificate?
A Zakat and Income Tax Certificate is an official electronic document issued by the Zakat, Tax and Customs Authority (ZATCA), proving that a business has filed its annual Zakat or tax returns and settled all related financial obligations. It is sometimes referred to as a tax clearance certificate and serves as official confirmation that the company complies with the Kingdom’s tax regulations.
The nature of the certificate varies depending on business ownership: Saudi companies and GCC-owned companies are subject to Zakat at 2.5% of the Zakat base, while foreign and mixed-ownership companies (owned by non-Saudis) are subject to Income Tax at 20% of net profits. In both cases, the certificate serves as proof of financial compliance.
Why Is This Certificate Essential for Your Business?
- Government Tenders: You cannot participate in any government tender or project without a valid Zakat and Income Tax Certificate.
- Final Payment Releases: Government entities refuse to release final payments to contractors and suppliers without an unrestricted final certificate.
- Banking Transactions: Banks and financial institutions require the certificate when granting financing or opening documentary credits.
- License Renewals: Some municipalities and regulatory bodies require the certificate for commercial registration or professional license renewals.
- Business Trust: Major companies request the certificate from partners and suppliers to verify their financial integrity.
Difference Between Zakat and Income Tax in Saudi Arabia
One of the most confusing points for business owners is understanding the precise difference between Zakat and Income Tax, and when each applies. This confusion can lead to filing incorrect returns or failing to issue the certificate. Here is the detailed breakdown:
| Criteria | Zakat | Income Tax |
|---|---|---|
| Target Entities | Saudi and GCC-owned companies fully owned by Gulf nationals | Foreign and mixed-ownership companies owned by non-Saudis |
| Rate | 2.5% of the Zakat base (net profits + working capital + reserves – fixed assets) | 20% of realized net profits |
| Legal Basis | Derived from Islamic Sharia principles | Conventional tax system |
| Certificate Type | Zakat Certificate | Income Tax Certificate |
| Applicable Entities | All Saudi companies regardless of activity | Foreign and mixed-ownership entities only |
Types of Zakat and Income Tax Certificates
When accessing the ZATCA e-portal to request a certificate, you will find that the Authority issues three main types of certificates, each with its own uses and conditions. Understanding the difference saves time and ensures you submit the correct request:
Final (Unrestricted) Certificate
This is the full certificate granted to an entity after settling all financial obligations and successfully filing all annual returns. It is valid for one full year and can be used for all purposes without restrictions, including final payment releases and major government tenders.
Restricted Certificate
Granted to entities that have filed their returns but have not fully settled their dues, or those still under examination and audit. This certificate allows daily business operations and participation in some tenders, but it blocks final payment releases from government contracts until the status is resolved.
Estimated Certificate
Designed for new businesses that have not yet completed a full financial year. It allows the company to conduct operations and renew licenses in its first year. ZATCA may require submission of a financial guarantee or articles of association to estimate expected Zakat or tax liability.
Tax Registration Certificate
Different from the Zakat/Tax Certificate, this only proves that the entity is registered in the Authority’s tax system and holds a unique tax number. It is granted immediately upon portal registration and does not prove settlement of dues. It cannot replace the Final Certificate.
Requirements for Issuing a Zakat and Income Tax Certificate
The Zakat, Tax and Customs Authority sets a clear set of conditions before allowing certificate issuance. These conditions are not complex, but they require careful preparation of documents and returns. Here is the detailed list:
Basic Requirements for Obtaining the Certificate
- Active Portal Account: The entity must be registered on the ZATCA e-portal with a valid unique number, and contact details (email and mobile) must be up to date.
- Annual Return Filing: The Zakat or tax return for the relevant financial period must be filed within the statutory period (120 days from the end of the financial year).
- Full Settlement of Dues: The principal Zakat or tax amount and any previous late-payment penalties must be paid through the SADAD system.
- Upload of Financial Statements: For entities subject to audit, audited financial statements must be uploaded on the Ministry of Commerce’s “Qawaem” platform.
- No Pending Objections: Any tax dispute or financial objection under review will block issuance of the Final Certificate.
- No Tax Violations: The entity’s file must be clean of registered customs or tax violations.
Important Notice Regarding Penalties
The Penalty Waiver Initiative has been extended until December 31, 2026, allowing settlement of late registration, filing, or payment cases without paying penalties, provided the principal amount is paid or an installment plan is agreed upon. Take advantage of this initiative to correct your tax status before requesting the certificate.
Steps to Issue a Zakat and Income Tax Certificate Online
Thanks to digital transformation at the Zakat, Tax and Customs Authority, you can now issue and print your Zakat and Income Tax Certificate electronically without visiting any office. Here are the practical steps in detail:
Step 1: Register on the ZATCA Portal
If your entity is not yet registered, start by registering with ZATCA through the e-portal using the National Single Sign-On or the entity’s unique number. After registration, a taxpayer account is created and linked to the commercial registration.
Step 2: File the Zakat or Tax Return
Log in to the “Returns” section on the portal and select “File New Return.” Fill in the financial data accurately, including: assets and liabilities, revenues and expenses, working capital, reserves, and debts. Then click “Submit.” You will receive a notification with the invoice number via SMS and email.
Step 3: Upload Financial Statements on the Qawaem Platform
For entities subject to audit (typically medium and large companies), audited financial statements must be uploaded on the Qawaem platform under the Ministry of Commerce. Ensure complete data alignment between the Zakat return and the financial statements, as any discrepancy will suspend the certificate.
Step 4: Settle Dues Through SADAD
Pay the Zakat or tax invoice through approved banking channels (online banking, ATM, or bank app). Keep the payment receipt. If the amounts are large, you can apply for Zakat installment plan through the same ZATCA portal.
Step 5: Request Certificate Issuance
After confirming completion of filing and payment, navigate to the “E-Services” tab, then “Request Certificate.” Select “New Request” and specify:
- Certificate type (Zakat or Income Tax).
- Required financial period.
- Purpose of the certificate (public tender, payment release, banking, etc.).
Step 6: Download and Print the Certificate
After automated processing (takes minutes in normal cases), the certificate is issued electronically. You can download it in PDF format and print it directly. The electronic version carries the same legal validity as a paper copy, and any party can verify its authenticity through the ZATCA portal.
Is Certificate Issuance Free?
Yes, the online issuance and printing service for the Zakat and Income Tax Certificate is completely free. However, the actual cost your company bears is the value of the Zakat or tax liability, which must be fully paid before the certificate can be issued. In other words: the certificate is free, but financial settlement is an essential prerequisite.
Required Documents for Certificate Issuance
Preparing documents before starting the process saves time and prevents request rejection. Here is the list of essential documents based on company size and type:
| Document | Small Companies | Medium & Large Companies |
|---|---|---|
| Valid Commercial Registration | Required | Required |
| Articles of Association / Bylaws | Required | Required |
| Period Financial Statements | Audit not mandatory | Audited and uploaded on Qawaem |
| Bank Account Statements | Required | Required |
| Fixed Assets Register | Recommended | Required |
| Inventory Register (if applicable) | Recommended | Required |
| Lease Contracts or Premises Ownership | Required | Required |
| Proof of Dues Settlement | Required | Required |
Zakat Calendar and Statutory Deadlines 2026
Compliance with statutory deadlines is the most important factor in ensuring smooth certificate issuance. Delay in filing or payment opens the door to penalties and blocks the certificate print option on the portal. Here is the basic timeline:
Return Filing Deadline
120 days from the end of the entity’s financial year. If the financial year ends on December 31, the last filing date is April 30 of the following year.
Payment Deadline
Usually coincides with the filing deadline or is set through a separate invoice via SADAD. Payment must be completed before requesting the certificate.
Certificate Validity
One full year (Gregorian or Hijri depending on the financial year type). Renewal procedures should begin at least 30 days before expiry.
New Entities
Companies that have not completed a full financial year may apply for an Estimated Certificate without a full annual return, and may be required to submit a financial guarantee.
Common Certificate Issuance Problems and Solutions
Many entities face technical or procedural obstacles that prevent the certificate from appearing on the portal. Understanding these problems and their solutions saves weeks of delay:
Problem: Certificate Is “Suspended” or Unavailable for Printing
Cause: Mismatch between Zakat return data and financial statements uploaded on the Qawaem platform. ZATCA links the data electronically and blocks issuance until alignment is achieved.
Solution: Review the trial balance and financial statements, correct any discrepancies, re-upload the statements on the Qawaem platform, then re-file the Zakat return with the correct figures.
Problem: Withholding Tax Discrepancies Exist
Cause: Unsettled amounts under the “withholding tax” category (for payments to non-resident parties) block issuance of the Zakat clearance certificate.
Solution: Review the tax account statement on the portal, settle any withholding tax discrepancies, or submit a settlement request if the amounts are under dispute.
Problem: VAT Returns Are Incomplete
Cause: The electronic linkage between ZATCA systems blocks Zakat certificate issuance if there are late or unfiled VAT returns.
Solution: File all overdue VAT returns and settle any related liabilities.
Problem: Outdated Contact Information
Cause: An outdated email or mobile number means certificate notifications and invoices are sent to the wrong recipient.
Solution: Update contact details in the entity’s file immediately through the e-portal.
How to Verify a Zakat and Income Tax Certificate
The Zakat, Tax and Customs Authority provides a free service to verify the validity of any Zakat or tax certificate. This service is extremely useful for companies wishing to confirm the regulatory status of suppliers or contractors before signing contracts. The steps are:
- Log in to the ZATCA e-portal, then go to “E-Services.”
- Select “Verify Zakat Certificate.”
- Enter one of the following: Commercial Registration number, Tax number, Certificate number, or Entity ID number.
- The certificate status appears immediately on screen (Valid / Expired / Restricted).
Professional Tip: Make Zakat certificate verification a standard step in your vendor or contractor onboarding process. Dealing with a party holding an expired or restricted certificate may transfer tax problems to you and delay your payment releases.
Renewing Your Zakat and Income Tax Certificate
Renewal is not a separate procedure; it is a repetition of the full compliance cycle: new return + payment + certificate request. Here are the practical renewal steps:
Renewal Steps
- Ensure all previous period dues are fully settled.
- Close the financial year and prepare financial statements.
- File the new Zakat or tax return within the statutory period (120 days).
- Settle the liabilities resulting from the new return.
- Access the portal and request a new certificate for the current financial period.
- Download, print, and archive the new certificate in your company file.
When should you start renewal procedures? It is recommended to begin at least 30 days before the current certificate expires. Some government entities require companies to maintain a valid certificate throughout the execution period of long-term contracts.
Want to guarantee issuance of your Zakat and Income Tax Certificate without delay or rejection?
Linking Zakat Certificates to E-Invoicing and the Qawaem Platform
Since the implementation of E-Invoicing (FATOORA), company data has been directly linked to the Zakat, Tax and Customs Authority. This linkage directly affects certificate issuance:
- Revenue Matching: ZATCA compares your declared revenues in the Zakat return with electronic invoices issued through the FATOORA system. Any significant discrepancy raises a red flag and may suspend the certificate.
- Qawaem Platform: Uploading audited financial statements on this platform has become mandatory for entities subject to audit. Failure to upload or misalignment prevents certificate issuance.
- Digital Transparency: Electronic linkage reduces human error opportunities but increases the chance of automatic discrepancy detection. Therefore, your accounting records must be accurate and aligned with electronic invoices.
Professional Tips to Avoid Penalties and Delays
Based on our experience at HR360 Solutions helping hundreds of companies manage their Zakat obligations, here are the most important tips:
- Organize Your Books Year-Round: Do not wait until year-end to sort papers. Consistent records make filing a review task, not a reconstruction task.
- Monitor the 120-Day Deadline: Link your return filing date to your company calendar and set reminders 30 days before the deadline.
- Ensure Statements Match the Return: Review the trial balance before uploading any data to the Qawaem platform or the ZATCA portal.
- Settle Withholding Tax Immediately: Do not delay payment of withholding tax on amounts paid to non-resident parties.
- Keep Contact Details Updated: The mobile number and email in your ZATCA file must always be active.
- Consult Early: If your company is new or your activity is complex, engage a chartered accountant or tax advisor from the start.
Frequently Asked Questions About Zakat and Income Tax Certificates
What is a Zakat and Income Tax Certificate in Saudi Arabia?
It is an official electronic document issued by ZATCA proving that an entity has filed its returns and settled its Zakat or tax liabilities. It serves as a tax clearance certificate.
What are the types of Zakat and Income Tax Certificates?
Three types: Final (Unrestricted) after full settlement, Restricted for entities with outstanding dues, and Estimated for new businesses that haven’t completed a full financial year.
Is issuing a Zakat and Income Tax Certificate free?
Yes, online issuance and printing is completely free. However, all Zakat or tax liabilities must be fully paid before the certificate can be issued.
What are the requirements for issuing the certificate?
Basic requirements: portal registration, filing the annual return within 120 days, full settlement of dues including penalties, and no pending objections or audits.
How long does the issuance process take?
Once conditions are met, the certificate is issued instantly and automatically. If there are discrepancies or objections, processing may take days or weeks.
What is the difference between a Zakat Certificate and an Income Tax Certificate?
Zakat applies to Saudi and GCC-owned companies at 2.5% of the Zakat base. Income Tax applies to foreign and mixed-ownership companies at 20% of net profits.
Why can’t I print the certificate despite paying all dues?
Most common reasons: data mismatch with Qawaem platform, outstanding penalties from previous years, or withholding tax discrepancies.
What is the validity period of the certificate?
One full year (Gregorian or Hijri). It must be renewed by filing the new annual return and settling dues.
Can a foreign company obtain a Zakat Certificate?
Fully foreign-owned companies are subject to Income Tax, not Zakat, and receive an Income Tax Certificate. Mixed-ownership companies are subject to Zakat on the Saudi share and Income Tax on the foreign share.
Does a VAT Registration Certificate replace the Zakat Certificate?
No. The VAT certificate only proves registration in the VAT system. The Zakat and Income Tax Certificate proves settlement of annual obligations and is required for tenders and payment releases.
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Protect Your Business with Full Zakat Compliance
Don’t let your Zakat and Income Tax Certificate become a barrier to your company’s growth. The HR360 Solutions team is ready to help you prepare returns, issue certificates, resolve objections, and ensure full compliance with ZATCA regulations. Book your free consultation now and make the right decision for a sound financial future.