Business Corruption

According to Freedom House 2010, the tax assessment process in Saudi Arabia continues to be slow and cumbersome, and the calculation of religious tax (zakat) on local companies in particular often lacks transparency.

According to MENA-OECD Investment Programme 2006, in Saudi Arabia the Companies Law and the Department of Zakat Income Tax require an annual audit for most types of companies. All companies registered in accordance with the Companies Law are required to file their audited financial statements with the Ministry of Commerce within six months of their financial year end. Publicly listed companies are required to file audited quarterly financial statements. In general, state-induced audits can be an invitation to corrupt tax officials to solicit bribes from companies. However, no reports of corruption in relation to audits in Saudi Arabia are available.

Frequency

The World Bank & IFC: Doing Business 2011:
- A medium-sized company operating in Saudi Arabia must on average make 14 payments to the tax authorities every year and spend 79 hours preparing, filing, and paying taxes at a total tax rate of 14.5% of profits.

- Based on the administrative burden of paying taxes, Saudi Arabia performs better than most OECD countries.