Income tax advance payments
In one sentenceAmounts a business subject to income tax pays during the year on account of its tax, based on the previous year's tax, which are then deducted when filing the return.
Simply put
Instead of paying all the tax after the year ends, the law requires some taxpayers to make advance payments during the year under conditions set by the Regulations.
When filing the annual return you deduct what you paid in advance from the final tax, and pay the rest or claim the excess.
Worked example
A company made advance payments totaling 30,000 SAR during the year, and its final tax in the return was 50,000 SAR.
Final tax50,000 SAR
Advance payments30,000 SAR
Calculation50,000 − 30,000
Remaining to pay with the return20,000 SAR
Don't confuse it with
Withholding taxAdvance payments are paid by the business on its own tax, while withholding is deducted from amounts it pays to a non-resident.