ACCT 422 SEU Income Taxable Accounting & Finances Worksheet

Question: 1

Explain the followings in your own words: (2 marks)

• What do you mean by tax system in KSA? Is tax system is good or bad? Support your answer 

Under the Tax Law, who are the person or artificial person subject to the tax in Saudi Arabia?

How many types of tax systems are prevailing in the KSA?

• The Tax Law provides that income from the following specific types of activities/sources is considered taxable in KSA:

Q-2-What do you mean by Zakat, in your opinion what are the certain updates on the Tax and Zakat regulations in kingdom of Saudi Arabia? (2 marks)

• Question 3

A resident capital company has both Saudi and non-Saudi shareholders and its capital is divided between them equally. Net income for 2020 was 6,000,000 SR and was adjusted according to the tax rules applicable in the kingdom is 6,400,000 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 2,000,000 SR andgive explanation about dividends

Question 4

Now a days Saudi Government is focusing the taxation revenue. “Saudi Arabian government imposing different types of taxes on commodities, services as well as residency” (2 marks)

Support your answer to the above case study and differentiate between selective commodities tax and value added taxin your own words. Compare the VAT with past and present

Question 5

• A taxpayer incurred expenses of 150,000 SR to improve a depreciable asset at a book value of 950,000 SR. What is the amount of expenses deductible by the tax law? (2 mark)