Cross-Border Accounting Services in Saudi Arabia

Cross-border accounting is a vital service for Saudi-based companies that are part of a global financial ecosystem. This includes Saudi subsidiaries of foreign multinational corporations, Saudi companies with overseas branches, and any business that engages in significant transactions with non-resident entities, such as paying for international software licenses, consulting services, or royalties.

This service is required the moment your business engages in a financial transaction with a party outside of Saudi Arabia. It is especially critical when making payments to foreign service providers (which triggers withholding tax), dealing with related international companies (which triggers transfer pricing rules), or managing revenue and expenses in multiple currencies like USD and EUR.

Cross-border accounting is a highly specialized field, and the pricing reflects the expert knowledge required to navigate KSA's international tax regime. Costs are customized to your business's global footprint:

• **Moderate Complexity (e.g., managing withholding tax, multi-currency):** Starting from SAR 7,500 – SAR 15,000 per month.
• **High Complexity (e.g., detailed transfer pricing documentation, group consolidation):** Starting from SAR 15,000 – SAR 30,000+ per month.

Mismanaging cross-border finances in KSA carries substantial tax risks:

• **Withholding Tax (WHT) Penalties:** Failure to withhold the correct amount of tax (typically 5-20%) on payments to foreign entities results in significant penalties from ZATCA.
• **Transfer Pricing Violations:** ZATCA has implemented strict transfer pricing bylaws. Failure to maintain documentation proving your inter-company transactions are at "arm's length" can lead to large tax adjustments and fines.
• **Double Taxation:** Without proper application of Saudi Arabia's tax treaties, your profits could be taxed in both KSA and another country, eroding your bottom line.
• **VAT on Imported Services:** The reverse charge mechanism for VAT on services imported from abroad is complex and a common area for errors, leading to penalties.

Outsourcing cross-border accounting is the only viable option for most businesses operating in Saudi Arabia. It is not feasible to build an in-house team with expertise in both Saudi tax law and the laws of every other country you transact with. YourLegal provides a centralized team that understands the interplay between ZATCA's rules and global tax principles. We ensure your withholding tax obligations are met, your transfer pricing policies are defensible, and your global structure is tax-efficient. This strategic service is a core component of a high-functioning Virtual CFO engagement, providing the oversight needed to manage a global enterprise from your KSA base.