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Saudi Arabia’s Minister of Commerce, Majid Al-Qasabi, issued a ministerial decision to impose direct late lodgment penalties on local capital market players that fail to comply with their obligation to file their financial statements on time, effective as of July 1.
According to the ministerial decision, published in the official Umm Al-Qura gazette, the direct penalties, in accordance with the provisions of the Companies Law and its Implementing Regulations, will be as follows:
First: Violators among all types of companies (excluding unlisted joint-stock firms):
|
Types of Companies (Ex. Unlisted Joint-Stock Firms) |
||
|
Capital |
No. of Directors |
Fine |
|
Less than SAR 500,000 |
One director |
SAR 8,000 |
|
Two or more directors |
SAR 4,000 |
|
|
SAR 500,000 or more |
One director |
SAR 12,000 |
|
Two or more directors |
SAR 6,000 |
|
Second: Violators among unlisted joint-stock companies:
|
Unlisted Joint-Stock Companies |
|
|
Capital |
Fine |
|
Less than SAR 5 mln |
SAR 15,000 |
|
SAR 5 mln |
SAR 20,000 |
The decision also stipulated that those who continue to delay reporting their financial statements before the expiry of the period specified therein will be liable for a 50% increment in the respective fine.
These violators shall be informed of their breaches and the applicable penalties in this regard in accordance with the mechanism stipulated In Article 94 of the Implementing Regulations of the Companies Law, it added.
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