Tax and Zakat Accounting

Question Description

Q1. A resident capital company has both Saudi and non-Saudi shareholders and its capital is divided between them equally. Net income for 2019 was 3,000,000 SR and was adjusted according to the tax rules applicable in the kingdom is 3,200,000 SR. (2 Marks)

Required:

Compute the tax amount to be paid by the company.
Compute the tax amount to be paid by non-Saudi shareholders assuming that dividends paid in cash of 1,000,000 SR.

Q2.Answer the following questions. (3 Marks)

1. A taxpayer realized capital gains of 50,000 SR from selling his shares in Saudi capital market. How does these gains are treated under the Saudi Law?

2. A taxpayer incurred expenses of 50,000 SR to improve a depreciable asset at a book value of 500,000 SR. What is the amount of expenses deductible by the tax law?

3. Resident Capital Company works in sales business has the following selected financial information:

Account	Amount
Allowance for doubtful account	80,000SR
Reserve for obsolete inventory	50,000SR
Bad debt (written off)	6,500SR
Donations to the Help the Poor Organization (non-licensed in Saudi)	11,350SR
Old employees’ reunion party expenses	15,000SR
Loss on disposal a delivery truck	8,000SR

How much of these accounts are deductible under Saudi Low? Explain your answer.



^{Have a similar assignment? "Place an order for your assignment and have exceptional work written by our team of experts, guaranteeing you A results."}

Our Service Charter

1. Professional & Expert Writers: Eminence Papers only hires the best. Our writers are specially selected and recruited, after which they undergo further training to perfect their skills for specialization purposes. Moreover, our writers are holders of masters and Ph.D. degrees. They have impressive academic records, besides being native English speakers.

2. Top Quality Papers: Our customers are always guaranteed of papers that exceed their expectations. All our writers have +5 years of experience. This implies that all papers are written by individuals who are experts in their fields. In addition, the quality team reviews all the papers before sending them to the customers.

3. Plagiarism-Free Papers: All papers provided by Eminence Papers are written from scratch. Appropriate referencing and citation of key information are followed. Plagiarism checkers are used by the Quality assurance team and our editors just to double-check that there are no instances of plagiarism.

4. Timely Delivery: Time wasted is equivalent to a failed dedication and commitment. Eminence Papers are known for the timely delivery of any pending customer orders. Customers are well informed of the progress of their papers to ensure they keep track of what the writer is providing before the final draft is sent for grading.

5. Affordable Prices: Our prices are fairly structured to fit in all groups. Any customer willing to place their assignments with us can do so at very affordable prices. In addition, our customers enjoy regular discounts and bonuses.

6. 24/7 Customer Support: At Eminence Papers, we have put in place a team of experts who answer all customer inquiries promptly. The best part is the ever-availability of the team. Customers can make inquiries anytime.