Ministry of Commerce has submitted a draft ministerial decision on direct penalties for the violation of not filing financial statements within the statutory period, for public and interested parties« views through the »Consultation" platform of the Saudi Competitiveness and Business Center.
The draft decision aims to enhance the commitment of companies <a href="https://amlak.Filing financial statements within the statutory period, by applying direct penalties to anyone who violates his duty to file financial statements; thus contributing to raising the level of transparency and compliance with the provisions of the Companies Law.

According to the project, fines are imposed according to the form of the company, the size of the capital and the number of those responsible for management, for all forms of companies except listed joint stock companies. The project also took into account small and micro companies by establishing reduced fines commensurate with their size and the nature of their business, where the fine is (4,000) riyals when there is one director or chairman of the board of directors, and (2,000) riyals when there are multiple officials in charge of management.

The project includes a warning penalty for the violation of not filing financial statements for the fiscal year 2024, and the project stipulates increasing the fine by (50%) when repeating the violation of not filing financial statements for two consecutive fiscal years after the decision of the first violation acquires finality, and includes canceling Ministerial Resolution No. (239) dated 27/11/1445 AH, and implementing the new resolution from the date of its publication in the Official Gazette.The Ministry invited interested parties and the general public to express their views and comments on the draft decision via the “Reconnaissance” platform.