Construction ERP for Saudi Arabia

VAT at 15% applies to construction services, and ZATCA FATOORA e-invoicing requirements mandate electronic invoicing for all transactions. Zakat applies to Saudi-owned construction companies, while corporate income tax at 20% applies to the foreign-owned share of mixed entities. Withholding tax at rates varying from 5% to 20% applies to payments made to non-resident subcontractors and consultants for services performed in Saudi Arabia. This creates a need for careful tax management on projects involving international design firms, equipment suppliers, and specialist contractors.

The construction workforce in Saudi Arabia is predominantly expatriate, requiring management of iqama (residence permit) renewals, exit/re-entry visas, and the Wage Protection System. Nitaqat Saudization requirements apply with sector-specific quotas. The Ministry of Municipal and Rural Affairs issues building permits and conducts inspections. FIDIC contract conditions are widely used, with the Saudi government Standard Contract Terms applying to public works.

Yukti provides Saudi construction companies with project accounting that handles Zakat and corporate income tax calculations based on ownership structure, plus withholding tax management for non-resident contractor payments. ZATCA FATOORA integration generates compliant e-invoices for progress billings with QR codes and ZATCA clearance. The contractor classification module tracks the financial and technical requirements needed to maintain or upgrade the company classification grade. Labor management handles iqama tracking, exit/re-entry visa scheduling, GOSI contributions, and WPS payroll compliance for the large expatriate workforce. Nitaqat monitoring ensures Saudization percentages meet construction sector requirements. The project module manages progress billing under FIDIC or Saudi Standard Contract terms with retention tracking and variation order documentation.