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With businesses in Saudi Arabia embracing digital transformation, E-invoicing in Saudi Arabia and other tax regulations are now considered mandatory. The Zakat, Tax and Customs Authority (ZATCA) requires company to register for Tax Identification Number (TIN) in order to manage there tax obligations. This requirement allows that businesses across the country and especially those that are adapting to E-invoicing in Riyadh are in line with the national financial regulations. To start a business and pay taxes regularly in Saudi Arabia, it is crucial to have a ZATCA TIN in Saudi Arabia.
Nevertheless, there are instances in which you may require to de-register ZATCA TIN. Companies that stop operations or are no longer eligible for a TIN because they are exempt from Zakat must follow a proper procedure to cancel their TIN. Regardless if you’re shutting down your business or restructuring, getting into a deregister zatca tin is vital to not to face penalties and keep the compliance. In this blog, we shall discuss the main reasons for ZATCA TIN deregistration and how to do it in a smooth manner.
The Zakat, Tax and Customs Authority (ZATCA) is the official government body in Saudi Arabia that is responsible for the collection and management of taxes, customs duties and zakat in the Kingdom. It is basically to ensure that businesses abide by tax regulations, promote transparency and contribute to the stability of the nation’s economy.
Tax Identification Number (TIN) is a unique code that is given to businesses when registered with ZATCA. The TIN is issued after a company registers with the Ministry of Commerce, and is displayed on the company’s VAT certificate and is an important identifier in tax related processes and compliance.
A business entity needs to be deregistered from TIN if it has no tax obligations in ZATCA TIN in Saudi Arabia. This happens when the entity is no longer obliged to pay zakat or other relevant taxes because of the end of economic activities or the closure of the company. Deregistration means that the business is formally taken out of the tax system, and it will not have any future tax liabilities or penalties.
Also, a business may be required to deregister its TIN if it undergoes structural changes, like mergers, acquisitions or change in legal status. Completing this process means that companies confirm that they are no longer operating or liable for tax payments in the Kingdom.
The TIN deregistration will only take place when:
The prerequisites are as follows:
The procedure to deregister ZATCA TIN through ZATCA portal is as followed:
Log in to the ZATCA portal using your registered credentials. Make sure your username and password match with the business account. This step gives you entry into your company’s tax profile where you can register, view tax records and deregister. It is imperative to secure the access to the portal because the confidentiality and the integrity of your company’s tax information are to be maintained during the process.
After logging in, move to the general service centre part in the portal. It is an area that offers a number of services regarding tax and business registrations. Start the TIN cancellation process by looking for the option titled “deregister the record”. This is an important step to make sure you are in the right section to remove tax registrations related to your entity and make deregistration as smooth as possible.
Once you choose to deregister the record, you will be directed to a new section dedicated to TIN related processes. Click on the option of deregistering the TIN here. This will start the formal procedure for removing your company’s tax identification number from the ZATCA system. It is important to double check this option to ensure that you do not change other tax records or registrations not related to the TIN.
liquidation/acquisitions/merger/disposal/ etc.
By this stage, you will need to inform the tax authority why you are seeking the deregistration of your TIN. Reasons for common include company liquidation, mergers, acquisitions or the disposal of the entity. The reason you choose is important as it tells the authorities the nature of your business change. Accurate information is provided so that the deregistration request is in line with the correct regulatory guidelines and does not delay in any way.
If you have multiple branches of your business you will need to state what is the intended action for each. Closing the branch or transferring it to another entity are the options. This step helps the status of your company’s branches to be clear and avoid any confusion in the records. By choosing the right action, you prevent documenting inaccuracies as well with your business and regulatory authorities.
Then, you will be asked to choose the effective date of deregistration. You should choose a date that corresponds to the date your business ceased operations or ceased being eligible for tax obligations. Accuracy in setting a date prevents tax discrepancy and meting time frames set by the regulators. Once you enter the date, click the ‘next’ button to move on with the application process.
Before you move forward, you will need to confirm that you have reviewed all the information with regards to the branch or entity you are deregistering. This acknowledgment indicates you have gone through the information carefully to avoid errors. When you click “agree” you confirm that all the branches and all branches records were carefully checked and that the deregistration process is accurate and complete.
To substantiate your reason for deregistration, you will need to support documents. They can be liquidation certificates, merger agreements or official closure notices. In the given section, upload the required files that are clear and meet the format and size requirements. Documentation helps speed up the approval process and also helps avoid requests for additional information or clarifications.
In this step, give the details of the person requesting deregistration. Typically, information includes the applicant’s full name, contact information and role in the company. Accurate details also help the authorities reach out if any clarification is needed. In addition, providing verified applicant information gives the request legitimacy and helps to comply with compliance protocols.
After reviewing all the information and that the required documents are attached, click the ‘submit’ button and your application will be processed. The application will be reviewed by the relevant authorities once submitted and you will be notified of the status. Save reference numbers and confirmation receipts received, if any, in case your need arises for further correspondence or tracking purposes.
If the entity has other branches and deregistration will occur for one of the branches, this occurs. The steps are as follows:
1. You can log in through your credentials in the ZATCA portal.
To begin the branch deregistration process, you will have to access the ZATCA portal using your registered username and password.
2. On the dashboard, click on the deregistration icon.
To remove a specific branch from records, you will navigate to the dashboard and select the deregistration icon.
3. Then click on deregister a branch and choose the branch that should be deregistered.
Select “deregister a branch” and then choose the branch that you want to remove from the active company records.
4. Input the applicant’s details like name, number etc.
The applicant’s personal information such as full name, contact details and identification number for verification purposes will be entered.
5. Then, review the application again and click on submit.
All the details are carefully reviewed to ensure accuracy and then click the submit button to complete the deregistration request.
6. Once you submit, you will be notified within 3 working days that your branch will be deregistered.
You can expect a notification within three working days of the confirmation of the successful deregistration of the selected branch from ZATCA’s records.
In addition, you can also deregister your ZATCA TIN via the ZATCA application. The same is done in a step by step procedure as follows:
1. Enter your credentials or log into your account from there.
2. Click on the deregistration icon and click ‘deregister TIN’.
3. Select the reason for deregistration and fill in the form.
4. Check the uploaded information and click on “I agree.”
5. Attach the relevant supporting documents.
6. Ensure that the data is accurate and complete all requirements.
7. To apply for deregistration click on submit.
8. You will be notified once your TIN is successfully deregistered.
In conclusion, businesses in Saudi Arabia that are closing operations, restructuring or no longer meet tax obligations should understand the deregister ZATCA TIN process. To ensure compliance with the Zakat, Tax and Customs Authority’s regulations, you need to deregister an entire entity or a branch using the right steps. It is very important to make sure that all the prerequisites are met, for example, outstanding taxes need to be cleared and the required documents submitted. If businesses stick to the process, they will avoid being fined and will keep a clean compliance record.
When you decide to deregister ZATCA TIN through the online portal or the mobile application, you need to review all details before submission. Since businesses operate across the Kingdom, it is important for them to be updated on changes in tax laws to avoid future complications. Consulting tax professionals can assist in obtaining ZATCA TIN in Saudi Arabia. Timely action and following the procedures outlined helps you to process your deregister ZATCA TIN in an efficient manner and proceed to the next step of your business with confidence.
