ZATCA TIN Deregistration: Reasons and Process

A tax identification number (TIN) in Saudi Arabia is a must for businesses to begin their operations and pay taxes regularly. This unique code helps the government track whether companies are following the tax regulations properly or not. Therefore, it is mandatory to register for a TIN. 

However, if businesses cease their operations, corporations can deregister their tax identification number if their company is no longer eligible to pay taxes, aka Zakat in Saudi Arabia. This guide offers a comprehensive overview of the step-by-step procedure to deregister ZATCA TIN. 

What is ZATCA TIN in Saudi Arabia? 

Zakat, Tax and Customs Authority (ZATCA) in Saudi Arabia is a government agency responsible for the management and collection of taxes, customs duties, and zakat in the KSA. 

Further, the ZATCA TIN is a unique number displayed on the VAT certificate of an entity in Saudi Arabia. This unique number is issued when an entity gets registered with the ZATCA, after registering with the Ministry of Commerce to conduct its business operations. 

When is TIN Deregistration required?

ZATCA TIN deregistration is required when your entity is no longer required to pay Zakat/tax in KSA. This involves deregistration from ZAKAT as well as other taxes. This further implies that the entity has ceased to carry on economic activity or has ceased to exist. 

Prerequisites Before Applying for Deregistration

The TIN deregistration will only take place when

• The entity has deregistered with excise tax and VAT.
• There are no late declarations, open cases, or amounts due against the entity. 

The prerequisites are as follows: 

• After the entity has deregistered with excise tax and VAT, ensure that there are no indirect taxes due. If there are any, then they are cancelled before the procedure takes place. 
• Documentary proof of reasons for cancellation of the TIN. 

Step-by-Step Process to deregister ZATCA TIN 

Here is a step-by-step procedure to deregister ZATCA TIN through the ZATCA portal: 

When No Other Branches of an Entity Exist

The entire entity is to be deregistered. This happens when the entity is suspending all its operations and has no other branches.

1. Login to your account via the ZATCA portal. 
2. Click on the general service centre, then select deregister the record.
3. Further, click on deregistering the TIN.
4. Choose the appropriate reason for deregistering TIN, whether it’s due to liquidation/acquisitions/merger/disposal/etc. 
5. After selecting the reason, you’ll have to choose the desired action for the branch. 
6. Once the action is selected, you can set the date and then click on next.
7. Click on agree- that the branch has been viewed before deregistering.
8. Attach relevant documents. 
9. Fill out the personal details of the applicant.
10. Click on submit.

B.  Where the Entity is Deregistering One of Its Branches

This happens when the entity has other branches, and deregistration is going to take place for one branch. The steps are as follows: 

1. Log in through your credentials on the ZATCA portal. 
2. Click on the deregistration icon on the dashboard.
3. Then click on deregister a branch and select the branch that needs to be deregistered.
4. Fill out the applicant’s details such as name, number, etc. 
5. Review the application once again then click on submit. 
6. After submitting, within 3 working days, you’ll receive a notification informing you that your branch will be deregistered.

Through the Application

Further, you can also deregister your ZATCA TIN through the ZATCA application. Here is a step-by-step procedure for the same: 

1. Login to your account via your credentials.
2. Select on deregistration icon, then deregister TIN. 
3. Choose the reason for deregistration and fill out the form. 
4. Review the information you’ve uploaded, then click on “I agree”. 
5. Attach relevant supporting documents.
6. Complete all the requirements, then validate that the data is correct.
7. Click on submit. 

Review the application once again to ensure you’re not missing out on any major detail or there are no errors in the application. Once viewed, you can apply. You will receive a notification once your TIN is deregistered from the system. 

Fact check: There are no fees required to deregister ZATCA TIN. 

Conclusion

Deregistering ZATCA TIN is a crucial process if a business entity no longer satisfies the conditions for maintaining a TIN in Saudi Arabia. It is essential for taxpayers to effectively understand the reason for deregistering, collect evidentiary proof of the same, and follow the step-by-step procedure to deregister the TIN. 

It helps taxpayers manage their tax obligations effectively and adhere to governmental norms to avoid paying penalties and smoothly get out of the tax system.