RiyalPlus — Glossary
Plain-language definitions of the terms you'll encounter in RiyalPlus and on your ZATCA filings. These entries explain what each term means; they are informational, not tax or legal advice. Where a definition rests on a regulation, the source is cited.
Tax & Zakat Concepts
Accountant certification threshold — The income level above which a SOCPA-licensed accountant must certify a declaration before it is filed: taxable income before deduction of expenses above SAR 1 million. Because it is measured before expenses are deducted, this sits closer to gross income / turnover than to the adjusted tax base — the binding ZATCA reading, not the literal "net taxable income" one. RiyalPlus flags when a case requires certified-accountant sign-off. [Source: Income Tax Law, Article 60(e); cf. IRR Article 58]
Adjusted profit (Zakat / Tax) (الربح المعدَّل) — Net book profit after the applicable declaration adjustments are applied, calculated separately for the Zakat side and the tax side. It feeds into the Zakat base and the tax base respectively.
Adjustment line (بند تعديل) — A single permitted modification to net book profit on the declaration — for example excess repairs, used provisions, or a depreciation difference. Each applicable line needs a supporting evidence reference. See also: Evidence reference.
Arm's length (مبدأ استقلالية التعامل) — The principle that transactions between related parties should be priced as they would be between independent parties. RiyalPlus classifies each related-party transaction as compliant, needing adjustment, or needing review. [ZATCA TP Bylaws, Art. 2 (Board Resolution 6-1-19, 25/5/1440H)]
Audit exemption — A provision allowing the smallest companies to skip the statutory audit when they meet at least two of three thresholds (capital ≤ SAR 10M, assets ≤ SAR 10M, employees ≤ 49), and only for the first fiscal year or the first two consecutive fiscal years. [Source: Companies Law, Article 19]
Business archetype — RiyalPlus's classification of a company's primary business type (trading, services, manufacturing, construction, real estate, or mixed), inferred from its registered activities. It influences how certain statements and checks are applied.
Capital (رأس المال) — The capital recorded in the company's commercial registration. It drives the pricing band and, together with ownership nationality, the apportionment of Zakat.
CbCR (Country-by-Country Reporting) (تقرير المعلومات حسب الدولة) — A reporting obligation for large multinational groups whose consolidated revenue in the preceding year exceeds SAR 3.2 billion. The declaration asks whether CbCR applies; where it does, supporting evidence is required. [ZATCA TP Bylaws, Art. 18]
Closing inventory — Inventory on hand at period end. Under the periodic method it appears both inside cost of goods sold and as a balance-sheet asset — this is correct accounting, not double counting.
COGS (Cost of Goods Sold) (تكلفة المبيعات) — Computed as opening inventory + purchases − closing inventory. A blocking check verifies this formula before export.
Commercial registration (CR) (السجل التجاري) — The official company registration document. RiyalPlus reads ownership, capital, legal form, and activities from it to build the company profile.
Evidence reference (مرجع الدليل) — A link from an adjustment or base line to a supporting workpaper or uploaded document. Applicable adjustment lines must carry one for the declaration to pass validation.
Financial statements (القوائم المالية) — The IFRS-for-SMEs statement set RiyalPlus generates from the computed result: statement of financial position, income statement, cash flow statement, statement of changes in equity, and notes. See also: FAQ "What are the financial statements RiyalPlus generates?".
Form 10 / Form S/10 (نموذج الإقرار) — The annual return submitted to ZATCA. "Form S" is the Zakat return and "Form 10" the income tax return; they share one structure. See also: FAQ "What is Form 10 / Form S/10?".
GCC (دول مجلس التعاون الخليجي) — Gulf Cooperation Council. For ownership classification, GCC nationals are grouped with Saudi owners for Zakat-eligibility purposes.
Hijri calendar (التقويم الهجري) — The Islamic lunar calendar. When a filing period runs on the Hijri calendar, the Zakat rate is day-count adjusted rather than a flat rate. See also: Zakat rate.
IFRS for SMEs (المعايير الدولية للتقرير المالي للمنشآت الصغيرة والمتوسطة) — The accounting framework RiyalPlus uses to prepare the financial statements.
Income statement (قائمة الدخل) — The statement of revenue, cost of sales, and expenses that produces net profit for the period; one of the generated financial statements.
Income tax (ضريبة الدخل) — The tax applied to non-Saudi-owned portions of a company's profit. Whether it applies is determined by EntityTaxMode.
Inventory method — How a business tracks inventory: periodic (a year-end count, the Saudi SME default), perpetual, none, or hybrid. RiyalPlus detects it during trial-balance ingestion.
ISIC (التصنيف الصناعي الدولي الموحّد) — International Standard Industrial Classification codes for a company's registered activities, used to infer its business archetype.
Net book profit (صافي الربح المحاسبي) — Bottom-line profit from the income statement (revenue − cost of sales − expenses), before any tax or Zakat adjustments.
Ownership structure (هيكل الملكية) — The split of a company's capital and profit among Saudi, GCC, and non-Saudi owners. It determines EntityTaxMode and how liabilities are apportioned. See also: EntityTaxMode.
Related party (طرف ذو علاقة) — An entity connected to the filing company by ownership, management, or control. Related parties trigger disclosure requirements and, where there are controlled transactions, transfer-pricing obligations. [Source: IFRS for SMEs, Section 33; ZATCA Transfer Pricing Bylaws, Article 14] See also: FAQ "What is a related party?".
Retained earnings (الأرباح المبقاة) — Accumulated profits not distributed to owners. They form part of the Zakat base's sources of funds.
SADAD (سداد) — Saudi Arabia's electronic bill-payment system; SADAD reference numbers can be carried into the declaration's payment summary.
SAR (ريال سعودي) — Saudi Riyal, the presentation currency for all amounts in RiyalPlus.
SFP — Statement of Financial Position (قائمة المركز المالي) — The balance sheet, prepared under IFRS for SMEs; shows assets, liabilities, and equity at period end. Rendered inside the financial-statements PDF.
SOCPA (الهيئة السعودية للمراجعين والمحاسبين) — The Saudi Organization for Chartered and Professional Accountants; licenses the accountants who certify declarations and financial statements.
Statement of cash flows (قائمة التدفقات النقدية) — One of the generated financial statements, showing cash movements across operating, investing, and financing activities.
Statement of changes in equity (قائمة التغيرات في حقوق الملكية) — One of the generated financial statements, reconciling opening and closing equity for the period.
Tax base (الوعاء الضريبي) — The income-tax counterpart of the Zakat base: the non-Saudi partners' share of taxable income, less permitted expenses. [Source: Income Tax Law, Article 6(a)] See also: FAQ "What is the tax base?".
TP — Transfer pricing (أسعار التحويل) — The pricing of transactions between related parties. RiyalPlus captures these transactions, classifies them, and produces the disclosure document. See also: TP Disclosure Form.
TP Disclosure Form (نموذج الإفصاح عن أسعار التحويل) — The form ZATCA requires from any entity with controlled (related-party) transactions, regardless of size; from FY 2024 it also applies to Zakat payers. [Source: ZATCA Transfer Pricing Bylaws, Article 14] See also: FAQ "When does an entity need the TP Disclosure form?".
TP documentation tier — The level of transfer-pricing documentation required, determined by entity type and the aggregate value of related-party transactions. The universal baseline is a disclosure form (no size threshold). Above applicable thresholds — which differ between income-tax payers and zakat payers — Local and Master Files are required. [ZATCA TP Bylaws, Arts. 14, 16, 17]
VAT (Value Added Tax) (ضريبة القيمة المضافة) — A 15% consumption tax. RiyalPlus records a company's VAT number but does not compute VAT in the Form 10 engine; VAT on RiyalPlus's own fees is added at checkout.
ZATCA (هيئة الزكاة والضريبة والجمارك) — The Zakat, Tax and Customs Authority: the Saudi government body to which Zakat and income tax declarations are submitted.
Zakat (الزكاة) — A religious wealth levy on Saudi/GCC-owned business capital, computed annually. Whether it applies is determined by EntityTaxMode.
Zakat base (وعاء الزكاة) — The amount Zakat is calculated against — broadly, certain sources of funds with specified additions and deductions, computed by the "sources of funds" method, and not less than adjusted net profit. [Source: Zakat Implementing Regulations, Articles 4–6] See also: FAQ "What is the Zakat base?".
Zakat rate (نسبة الزكاة) — 2.5% over a standard year. Where the fiscal period is Hijri-based and does not correspond to a standard Hijri year (for example, a long or short transitional period), a day-count-adjusted rate applies. RiyalPlus derives the adjusted rate from the period dates. [ZIR, Art. 14 (MR 1007/1445H)]
Product Concepts
Add-on — A paid product purchased on top of the core case, such as Verify+ or the TP Disclosure Form. Charged per case.
Audit trail — The record stored with every case linking each computed number back to its formula, inputs, and supporting evidence, so no figure is left unexplained.
Blocker vs. warning — Validation checks come in two severities: blockers prevent export until resolved; warnings flag issues for review but do not block. See also: Submission ready.
Branding — A subscriber's name and logo applied to the exported PDFs. Freelancer adds personal branding; Practice adds firm branding.
Case — One filing: one company, one period. The central work unit, moving through the statuses created → extracted → mapped → computed. (Export is a document action you can run on a computed case, not a separate lifecycle status.) See also: FAQ "What is a case?".
Case pool — A set number of core filings included in a subscription's annual price. Covers the core case only; add-ons are charged separately. See also: FAQ "What is a case pool?".
Company profile (also Client, Entity) — A single company the account files for, holding its CR number, capital, legal form, and related parties. Shown as "your company" in a Single Company account and "client" when filing for others.
Company profile version — A snapshot of a company profile. Each case pins to a specific version, so its data doesn't change after the fact.
Cooling-off period — A 14-day window from the start of a first subscription during which it can be refunded under the stated formula; renewals do not get a cooling-off period. (Refunds themselves are handled by the team, not the chat assistant.)
Credit note — A compliant refund document that references the original invoice, issued for cooling-off or error refunds.
Discount tier — The percentage discount on per-case products set by an active subscription.
Export — Producing the final, submission-ready PDFs. Unlocked only when all blocking checks pass. See also: Submission ready.
Filing period — The fiscal period a case files for, defined by its start and end dates.
Filing type / filing mode — How a case is classified: first year of a new entity, first time filing in the app, or sequential (a successor to a prior-year case). It affects validation and opening balances, not price.
Firm — An account shape: a team, with roles, filing for client companies. Requires a Practice subscription.
Invoice (tax invoice) — The Phase-1-compliant tax invoice RiyalPlus issues for its own fees (subscriptions, cases, add-ons), with sequential numbering and tamper-resistance.
Member — A user in the context of a team account, holding a role. See also: Role.
Multi-Company — An account shape: one user filing for several companies, their own or clients'. Can optionally take a Freelancer subscription.
Pricing band — The size category of the company being filed for (Small, Medium, Large, Enterprise), derived from its capital, which sets the case price.
Role — A team member's permission level: Admin, Member, or Viewer. Applies only to multi-member accounts. See also: FAQ "How do roles work in a Firm account?".
Seat — A user slot in a team subscription. Practice includes a set number of seats, with more available.
Sequential filing / successor case — A case linked to the prior year's case so closing balances carry forward as opening balances. See also: FAQ "Can I file for more than one year...".
Single Company — An account shape: one user filing for their own company. Eligible for the free trial.
Subscription — A recurring annual plan at the account level: Freelancer, Practice, or Enterprise. Adds discounts, branding, and (for teams) a pool and member management. See also: FAQ "What subscription options exist?".
Submission ready — The state in which all blocking checks have passed and the declaration can be exported.
Tenant account — The billable container that owns subscriptions, payment methods, company profiles, and cases. The unit of billing.
Trial allowance / trial case — The 2 free filings granted to new Single Company accounts. Trial output is watermarked and feature-limited, and a trial case locks after compute or first export. See also: FAQ "Is there a free trial?".
User — An individual with login credentials and a personal profile. At launch, a login belongs to one account.
Verify+ — An optional add-on that uses AI to cross-check supporting-document figures against the declaration. See also: FAQ "What is Verify+?".
Watermark — The marking applied to trial output to indicate it is not for submission.
Process Concepts
Compute (الاحتساب) — The step that calculates the Zakat base, tax base, and resulting amounts from the mapped trial balance, then runs the validation checks.
Divergent articles of association (divergent AoA) — When a company's articles of association set a profit-sharing split that differs from the capital-ownership split. For MIXED entities, the Saudi/GCC partners' share is subject to zakat and the non-Saudi partners' share to income tax. Where the AoA profit split differs from the capital split, the applicable apportionment basis should be confirmed with ZATCA. RiyalPlus flags this for review. [ITL, Art. 6(a) (Royal Decree M/1); ZIR, Art. 2 (MR 1007/1445H)]
ECI (Extracted Contract Information) — The structured company information RiyalPlus extracts automatically from the commercial registration: ownership split, capital, legal form, related parties, and activities. It populates the company profile. (Surfaced to users as "reading your commercial registration.")
Global pool (mapping) — A cross-account library of confirmed account-to-line mappings, used as a fallback suggestion source after an account's own templates. Privacy-protected by a minimum-account floor.
Mapping — Matching each trial-balance account to the correct declaration line. Suggested automatically, then reviewed by the user before compute. See also: FAQ "What does mapping mean?".
Mapping template — A per-account learned record of confirmed mappings, so repeat accounts are classified automatically in future filings.
Opening / closing balances — Account balances at the start and end of a period. In a sequential filing, one period's closing balances become the next period's opening balances.
Override — A user's deliberate acceptance of a non-blocking warning, recorded with a reason in the audit trail.
Prefill (opening balances) — Carrying line-level balances from a parent case into its successor automatically.
Provenance — An indicator of where a value came from: the contract, last year's filing, a template, the global pool, an AI suggestion, or a manual edit.
Trial balance (TB) (ميزان المراجعة) — The list of all general-ledger account balances for the period. The source data RiyalPlus reads. See also: FAQ "What is a trial balance, and why does RiyalPlus need it?".
TB ingestion — The step that reads an uploaded trial balance, detects its layout, and normalizes it into a structured form ready for mapping. See also: FAQ "My trial balance won't ingest...".
Validation / controls — The checks run after compute that confirm the declaration is internally consistent and complete (for example: the trial balance balances, the balance sheet balances, the COGS formula holds). Blockers must pass before export. See also: Blocker vs. warning.