In Saudi Arabia’s evolving business landscape, staying on top of your finances is essential—not just for growth, but for compliance and smart savings. Yet many companies, especially small to mid-sized enterprises (SMEs), miss out on tax deductions they’re fully entitled to under the Zakat, Tax and Customs Authority (ZATCA) regulations.
At Eda Wealth, we help business owners across the Kingdom optimize their finances and reduce liabilities through strategic planning. In this guide, we uncover 10 commonly overlooked tax write-offs that could significantly improve your tax savings in KSA.
1. Business-Related Rent and Utilities
If your company rents office space or a commercial unit, the VAT you pay on rent and utilities is typically deductible—yet many fail to claim it properly.
Deductible expenses include:
- Office rent
- Electricity and water bills
- Internet for business use
Learn more from ZATCA’s VAT Guide.
2. Business Use of Vehicles
If your business owns vehicles (for deliveries, logistics, or travel), expenses such as fuel, maintenance, and insurance may be deductible—and if VAT is charged, it can often be recovered.
Don’t forget to track:
- Fuel receipts
- Repair invoices
- Toll fees (if applicable)
Note: Personal-use vehicles are not VAT-recoverable unless you can prove exclusive business use.
3. Professional Services and Advisory Fees
Whether you’re working with legal consultants, auditors, or a strategic advisor, these fees are generally deductible and the VAT can often be reclaimed.
At Eda Wealth, our bookkeeping services and fractional CFO services are tailored to KSA regulations—and fully deductible as business expenses.
4. Accounting Software and Cloud Tools
Digital transformation is a huge push in Vision 2030, and if your business is modernizing, don’t forget to claim expenses for cloud-based tools.
You can deduct costs for:
- Accounting systems (e.g., Xero, QuickBooks)
- ERP software
- Data storage and analytics platforms
5. Staff Training and Development
Under KSA labor law, companies are encouraged to invest in local talent. If you’re paying for employee upskilling, those expenses are often deductible.
Include:
- Technical and language training
- Online courses
- HR development programs
6. Bad Debts on Invoiced Sales
In certain cases, VAT paid on bad debts (unpaid invoices) can be reclaimed if specific ZATCA conditions are met—yet many businesses fail to follow through.
ZATCA requires documentation that you’ve made reasonable efforts to collect payment and waited at least 6 months.
7. Business Meals and Entertainment (With Caution)
While not as broadly deductible as in other countries, client-related meals or meetings in hotels or restaurants for business purposes can be partially claimed, especially if invoiced separately with VAT.
Keep clear records of:
- The business purpose
- Attendees
- VAT invoices from the vendor
8. Bank Charges and Financing Costs
Your business banking fees, loan interest (especially under sharia-compliant structures like Murabaha), and transaction costs are often deductible business expenses.
Make sure to include:
- Bank statement fees
- Wire transfer costs
- Financing charges on equipment or real estate
9. Marketing and Branding Costs
With competition heating up in the Saudi market, marketing spend is crucial—and 100% deductible if related to promoting your business.
Eligible deductions include:
- Social media advertising (Meta, Google, Snapchat)
- Printing and design of marketing materials
- Website creation and maintenance
10. Startup and Setup Costs
If you’ve recently launched a business in KSA, the costs of setting up your operations—including licensing, CR registration, and feasibility studies—are often deductible.
You may also be eligible for additional benefits under Monsha’at or MISA support programs for SMEs.
Final Thoughts
Navigating taxes in Saudi Arabia can be complex, but you don’t have to do it alone. Identifying missed tax deductions and overlooked tax write-offs can lead to significant tax savings and improved cash flow.
At Eda Wealth, we specialize in helping Saudi businesses grow smarter through precise financial management. Whether you’re a startup or scaling company, our bookkeeping services and fractional CFO solutions are here to support you.
Ready to reclaim what’s rightfully yours?
👉 Contact us today for a free consultation tailored to the KSA business environment.