Affidavit Of Non Filing Of Income Tax Return Template for Saudi Arabia
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What is a Affidavit Of Non Filing Of Income Tax Return?
The Affidavit Of Non Filing Of Income Tax Return is a crucial document within Saudi Arabia's tax compliance framework, used when an individual or entity needs to formally declare and explain their non-filing of tax returns. This document becomes necessary in various situations, such as when income falls below the filing threshold, during periods of non-residence, or when exempt from filing requirements under Saudi tax laws. The affidavit must comply with ZATCA regulations and requires notarization to be legally valid. It serves multiple purposes, including updating tax records, responding to authority inquiries, or supporting visa applications. The document typically includes detailed personal or corporate information, specific tax periods, and comprehensive reasoning for non-filing, making it a vital tool for maintaining transparency with tax authorities and preventing potential legal complications.
Frequently Asked Questions
Is an Affidavit of Non Filing of Income Tax Return legally binding in Saudi Arabia?
Yes, this affidavit is legally binding in Saudi Arabia when properly executed and notarized. It constitutes a sworn declaration under the Income Tax Law (Royal Decree No. M/1) and making false statements can result in penalties under ZATCA regulations. The document must be notarized by an authorized notary public to establish legal validity.
Can ZATCA reject my Affidavit of Non Filing if it's incomplete or missing information?
Yes, ZATCA can reject incomplete affidavits and may impose penalties for inadequate responses. The document must clearly explain the specific reasons for non-filing, reference applicable exemptions under the Income Tax Law, and include all required supporting documentation. Rejection can lead to further investigation and potential tax assessments.
How does this affidavit differ from a regular tax exemption certificate in Saudi Arabia?
An Affidavit of Non Filing explains why returns weren't filed for past periods, while a tax exemption certificate proactively establishes ongoing exemption status. The affidavit is reactive documentation responding to ZATCA inquiries, whereas exemption certificates are preventive measures obtained before tax obligations arise under the Income Tax Law.
How long does it take to prepare and notarize this affidavit in Saudi Arabia?
Preparation typically takes 1-3 business days depending on complexity and required supporting documentation. Notarization can be completed same-day at authorized notary offices. However, gathering supporting documents like financial records or legal opinions may extend the timeline to 1-2 weeks for complex cases.
Must this affidavit reference specific provisions of Saudi Arabia's Income Tax Law?
Yes, the affidavit should cite relevant articles from the Income Tax Law (Royal Decree No. M/1) and implementing regulations that justify non-filing. Common references include exemption thresholds, residency requirements, or specific industry exemptions. Proper legal citations strengthen the document's credibility with ZATCA.
Can I use this affidavit for multiple tax years in Saudi Arabia?
Yes, but each tax year's non-filing must be specifically addressed with separate justifications. The affidavit should clearly state the periods covered and explain circumstances for each year. ZATCA may require separate affidavits for different tax years if the reasons for non-filing vary significantly between periods.
Will ZATCA accept this affidavit without supporting documentation?
Generally no, ZATCA expects supporting evidence to validate claims made in the affidavit. Required documentation may include financial statements, residency certificates, business registration records, or legal opinions depending on the reason for non-filing. Unsupported affidavits are likely to be rejected and may trigger tax audits.
About the Affidavit Of Non Filing Of Income Tax Return
An Affidavit Of Non Filing Of Income Tax Return is a sworn legal document that formally declares and explains why you have not submitted income tax returns for specific periods in Saudi Arabia. Under the Income Tax Law (Royal Decree No. M/1) and ZATCA regulations, this document serves as official correspondence with tax authorities and provides legal documentation for your non-filing status.
When do you need this document?
You need this affidavit when ZATCA inquires about missing tax returns, when your income falls below the mandatory filing threshold, or during periods when you held non-resident status. The document is also required when supporting visa applications that require tax compliance verification, when responding to employer requests for tax filing confirmation, or when updating your records with financial institutions. Additionally, you may need this affidavit if you were exempt from filing due to specific provisions under Saudi tax law, such as certain diplomatic immunities or qualifying charitable organization status.
Key legal considerations
The affidavit must include accurate declarant information, specific tax periods in question, and detailed reasoning for non-filing that aligns with Saudi tax regulations. You must ensure your reasons for non-filing are legitimate under the Income Tax Law, as false declarations can result in penalties under the Law of Criminal Procedures. The document requires notarization by an authorized notary public to be legally binding, and all information must be complete and truthful. Consider that ZATCA may request supporting documentation to verify your claims, so maintain records that substantiate your non-filing status. If you used professional tax services, include relevant CPA verification where applicable.
Legal requirements in Saudi Arabia
Under Saudi Arabia's Income Tax Law and ZATCA regulations, the affidavit must be prepared in Arabic or include certified Arabic translation if originally in another language. The document must comply with Saudi Notary Law requirements for proper execution and witnessing. You must include your national ID or Iqama number, current Saudi address, and contact information as per ZATCA identification standards. The affidavit should reference specific sections of the Income Tax Law that support your non-filing position, and if applicable, include employer verification or legal representative authorization. ZATCA may require the affidavit to be submitted within specific timeframes when responding to official inquiries, so ensure prompt preparation and submission to avoid potential complications.
GOVERNING LAW
Applicable law
This Affidavit Of Non Filing Of Income Tax Return is drafted to comply with Saudi Arabia law. Key legislation includes:
Implementing Regulations of the Income Tax Law: Detailed regulations that explain the practical application of the Income Tax Law, including procedures for filing returns and documentation requirements
Zakat, Tax and Customs Authority (ZATCA) Regulations: Regulations governing the administration of tax and zakat collection, including requirements for declarations and submissions
Law of Criminal Procedures (Royal Decree No. M/2): Relevant sections pertaining to false declarations and penalties for submitting incorrect information in legal documents
Saudi Notary Law: Legislation governing the authentication of legal documents and affidavits in Saudi Arabia
General Organization of Social Insurance (GOSI) Law: Relevant for verifying employment status and income documentation in relation to tax obligations
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