Critical Deadline Alert: Submit Financial Statements by June 30 or Risk Penalties.
Deadline Alert: Saudi Businesses Must File 2024 Financial Statements Before June 30, 2025 to Avoid Fines
Saudi Gazette, 15 June 2025 – The Saudi Ministry of Commerce has issued a critical reminder for businesses operating in the Kingdom: Companies with a fiscal year ending on 31 December 2024 must submit their financial statements by 30 June 2025 to comply with Saudi Arabia Cabinet Decision No. 678/1443 and avoid penalties.
Understanding the Legal Requirement
The submission of financial statements falls under Article 17 of Saudi Arabia Cabinet Decision No. 678/1443, which governs the Companies Law. According to this regulation:
- Companies must prepare and submit their financial statements within six months after the end of their fiscal year.
- The statements must align with Saudi Accounting Standards (SAS) to ensure uniformity and accuracy.
- The responsibility for compliance lies with key company officials, including the company president, general manager, or chairman of the board, depending on the company’s legal structure.
This requirement is not just a bureaucratic formality—it plays a vital role in maintaining corporate accountability, operational transparency, and investor confidence.
Why Compliance Matters: Benefits for Businesses
Submitting financial statements on time offers several advantages:
1. Avoid Legal Penalties
Non-compliance triggers financial penalties under Article 262 of the Companies Law. The exact fines vary depending on the severity of the delay, but they can be substantial, especially for repeated violations.
2. Enhance Corporate Transparency
Transparent financial reporting builds trust with shareholders, investors, and financial institutions. It ensures that stakeholders have accurate data to assess the company’s performance.
3. Strengthen Investor Confidence
Investors and partners rely on financial statements to evaluate business health, governance, and profitability. Timely submissions reinforce credibility and attract potential investments.
4. Facilitate Better Financial Oversight
Regular financial reporting allows companies to identify financial trends, manage risks, and make data-driven decisions. It also helps in auditing and tax compliance, reducing the risk of discrepancies.
5. Align with Saudi Vision 2030 Goals
The Kingdom is pushing for greater economic diversification and corporate governance reforms. Compliance with financial reporting standards supports this vision by fostering a more transparent and competitive business environment.
How to Submit Financial Statements Electronically
The Saudi Ministry of Commerce has streamlined the submission process through the Qawaem platform, an online portal designed for corporate filings.
Steps to Submit Financial Statements:
- Access the Qawaem Platform:
- Log In or Register: Ensure your company has an active account.
- Upload Required Documents: Submit financial statements in the prescribed format.
- Verify and Submit: Double-check all entries before final submission.
Companies experiencing technical issues or needing guidance should contact the Ministry of Commerce support team for assistance.
Consequences of Non-Compliance
With the deadline fast approaching, companies must ensure their financial statements are:
- Accurate – Aligned with Saudi Accounting Standards.
- Complete – Including all necessary disclosures.
- Submitted on Time – Before June 30, 2025, to avoid penalties.
Key Takeaways:
- Deadline: June 30, 2025, for companies with a December 31, 2024, fiscal year-end.
- Legal Basis: Article 17 of Saudi Cabinet Decision No. 678/1443.
- Who’s Responsible? Company presidents, general managers, or board chairmen.
- Submission Method: Electronically via the Qawaem platform.
- Penalties: Financial fines and legal repercussions for non-compliance.
Don’t wait until the last minute—ensure compliance today. For any assistance, contact us on: info@veritasksa.law