Video summary

ما الذي نحتاجه لإصدار شهادة المحتوى المحلي ؟

Main summary

Key takeaways

Business

Business objective (what this video helps with)

This video explains how a company accountant prepares the required inputs to issue a Local Content Certificate (and related certifications tied to government procurement/tenders), with a focus on correctly completing the local content audit forms.

Core process: the “6 sheets” playbook

The submission is structured around six main sheets (plus optional extra forms for some company types).

Sheet 1 — Company & registration basics (initial data)

Provide the company and registration details exactly as shown in the official records:

  • Company/establishment name (exactly as in the Commercial Register and Articles of Incorporation)
  • Detailed address
  • Fiscal year-end for which the certificate will be issued
  • Unified number (Commercial Register number starting with 7 or 700)
  • Responsible person:
    • Name
    • Email
    • Phone
    • Mobile

  • Brief description of goods/services / main activity Examples mentioned:

    • General construction/building/contracting
    • Schools/hospitals
    • Wholesale/retail
    • Prior certificate status
    • If issued before: mark “Yes”
    • If issued in prior years (e.g., 2024), prepare a copy of that certificate to support a 2025 issuance

Attachments referenced for Sheet 1

  • Audited financial statements
  • Trial balance (preferably categorized to match the audited statements)
  • Articles of Incorporation
  • VAT registration certificate (VAT category)
  • National Address certificate/data
  • Commercial Register (establishment)
  • Social security certificate
  • (If available) copies of Local Content Certificates for the past three years; otherwise for the available year(s)

Note: A section is left blank for the auditor to complete in the office before issuance.

Sheet 2 — Sales analysis at customer level

Enter revenues/sales per customer (domestic and optionally export).

  • Example concept:
    • Customer (e.g., “Ibrahim Al-Salmi” / “Al-Ittihad Company”) → enter amount sold to each

Classification & consistency

  • Identify each revenue as:
    • Domestic (within the Kingdom) or
    • Export (outside the Kingdom)
  • Classify by sector/type of sales
  • Ensure customer-level totals match the revenue figures in the financial statements

Audit interaction

  • The client provides the customer revenue analysis.
  • The auditor requests sampling depending on whether sales are domestic vs imports.

Sheet 3 — Workforce

For each employee, provide:

  • Name
  • ID / residency number
  • Nationality: Saudi / non-Saudi
  • Gender
  • Registration status (e.g., registered under regulations such as social security + employment contract)

  • Salary components and how paid:

    • Salary transferred via payroll/bank system Example: January–April deposits

    • Additional amounts paid outside payroll Example: housing allowance paid every six months, or “three months’ salary” style payments

    • Bonuses and other allowances (including those deposited outside payroll)

Output expectation

  • Totals for salaries included in payroll transfers, plus other compensation items paid outside payroll.

Sheet 4 — Goods and services analysis (purchases / costs breakdown)

Split purchases into:

  • Goods (merchandise)
  • Services

For each purchase/cost line, include:

  • Supplier company name + commercial registration number / unified 700 number
  • Whether the supplier resource is local or foreign
  • If local: specify factory if applicable (factory within the Kingdom)
  • Service/goods description
  • Map to the correct financial statement category, e.g.:
    • Reseller buying computers for resale → “computers”
    • Renting office space → classify as a rental service (example ties to the financial statement line “rents”)
  • Amounts exclude VAT (explicitly required)

Sheet 5 — Government expenses

Enter specific direct-to-state government fees by category, such as:

  • Residency and visa fees (excluded per video)
  • Muqeem platform fees
  • Chamber of Commerce fees
  • Property transfer fees
  • (and other similar categories from the provided list)

Exclusion rule (important)

  • If the expense is not directly to the state (e.g., intermediary company items like power-related extensions), it must not be treated as government expenses.
  • Instead, classify those amounts under services.

Sheet 6 — Assets

Prepare an assets table including:

  • Beginning cost / carrying values
  • Additions during the period
  • Disposals/deductions during the period
  • Accumulated depreciation at the beginning
  • Depreciation during the year

Example

  • Fleet of cars:
    • Initial cost: 100,000 SAR
    • Additions: 15,000 SAR
    • Total cost base: 115,000 SAR
    • Depreciation/deductions applied per the financial statements

Optional additional forms (not for all companies)

Research & Development (R&D) form

  • Required/used for companies with revenue/scale exceeding 100 million riyals (as stated: “over 100 million riyals”).

Employee Training form

  • Used if the company qualifies (criteria mentioned generally as “if company qualifies”).

Actionable recommendations (how to execute correctly)

  • Use a data preparation checklist:
    • Gather all named documents first (audited financials, trial balance, VAT certificate, national address data, commercial register, social security certificate, and prior local content certificates when needed).
  • Ensure cross-sheet consistency:
    • Sheet 2 (customer sales totals) must match the financial statement revenue figures.
    • Sheet 4 (goods/services amounts) must exclude VAT.
  • Classify correctly to avoid audit sampling issues:
    • Tag revenues/purchases as domestic vs export and local vs foreign.
    • Separate direct-to-state government expenses from similar intermediary costs (put non-direct expenses under services).

Metrics / KPIs mentioned

  • No business KPIs (e.g., revenue growth, margins, CAC, LTV, churn) were stated.
  • The only explicit quantitative threshold mentioned is:
    • R&D form applies if the company is over 100 million riyals.

Concrete examples / case-like scenarios included

  • Customer-level revenue entry

    • Example: sales to “Al-Ittihad Company” = 1,000,000 SAR
    • Total domestic sales = 12,000,000 SAR
    • Must match financial statements.

  • Workforce compensation structure

    • Example employee “Khalid” (non-Saudi):
      • Monthly payroll salary: 4,000 SAR
      • Housing allowance: 30,000 SAR/year outside payroll
      • Bonuses: 20,000 SAR outside payroll

  • Goods/services categorization

    • Reseller of computers → purchases classified as “computers” (goods)
    • Office rental → classified as rental service mapped to financial statement line “rents”

  • Assets table handling

    • Example shows car fleet additions during the year and depreciation handled per the financial statements.

Sources / presenters

Subtitles do not name a specific presenter or organization, and no identifiable person/source is provided.

Original video