Tax Laws of Saudi Arabia-Free-Samples for Students-Myassignment

Questions: 1.Article 1 of Income Tax Laws of Saudi Arabia has defined various terms used therein. It defines Person as any natural person or corporate person. What do you understand by this Natural and Corporate person? 2.According to the law, any person who does not satisfy the requirements of the status of a resident is called Non-Resident. State the requirement for the status of a resident. 3.According to the law, any person who does not satisfy the requirements of the status of a resident is called Non-Resident. State the requirement for the status of a resident. 4.According to Article 18 (a), Expenses incurred by the taxpayer for the repair or improvement of depreciable assets in each group may be deducted. What are these groups of depreciable assets and mention the depreciable rates for each group. Answers: 1.Article 1 of income Tax Laws of Saudi Arabia has defined person as natural and corporate person that means the natural person is a living human being with certain rights and responsibilities under the law. Natural person: A real and living human being, Possess the power of choice and thought, Can perform the organisations functions and also be a legal person, The life of the person is limited means that he/she can die at any time. Corporate person means that a corporation is represented different from its manager, employees and owners that means the corporation has a separate identity. The corporate person has same legal rights and responsibilities as that of any natural person. 2.The requirements to be fulfilled by the person to be called as a resident are: For natural person: A natural person is considered as the resident if he fulfils any of the following two criterias these are: He/ she have a permanent place of residence in the state and reside there for not less than 30 days in the taxable year. He/ she reside for not less than 183 days in a taxable year in the Kingdome. For the above two criterias the stay in the Kingdome for part of the day is to be considered as whole day except if the person is in transit that is he/ she is travelling from one Kingdome to another. The company is considered to be resident if the company fulfils any of the below listed conditions: The company is incorporated in accordance with the Companies Law. The central management of the company is located in the Kingdome. 3.As per Article 9 of the Income Tax Act of Saudi Arabia the asset which is encumbered by debt having value more than its market value then the amount that is be used for the purpose of taxation will be its original value. The amount that is treated as compensation will be SAR 15000. 4.The groups of depreciable assets and their rates of depreciation are: Depreciable Assets Rate of Depreciation Stationer Buildings 5% Movable agricultural and Industrial Buildings 10% Factories, machines, engines, hardware and software (Computer software) and equipment, including passenger and cargo vehicles 25% Expenses for geological surveying, drilling, exploration and other preliminary work to exploit natural resources and develop their fields 20% All other tangible assets not included in previous categories, such as furniture, planes, ships, trains and goodwill 10%