SZTAC 100/2020/IAR;2018/1567/Z
The unbilled revenues in fact represent financial obligations in the form of debts to the company's customers as a result of the taxpayer's implementation of the project contracted with him, and therefore they are financial rights valued as such, which includes them within the company's Zakat base as debts to its customers.
Background
On Monday, 22/04/1442 AH, corresponding to 07/12/2020 AD, the First Appellate Department for Violations and Disputes of Income Tax convened pursuant to Saudi Arabia Royal Decree No. 65474/1439 dated 23/12/1439 AH, based on Article 67(b) of the Income Tax System issued by Saudi Arabia Royal Decree No. M1/1425 dated 15/01/1425 AH, and amended by Saudi Arabia Royal Decree No. M113/1438 dated 2/11/1438 AH, at its headquarters in Riyadh, to consider the appeal submitted on 17/12/1439 AH, , by (trading and construction Company Name...) against the decision No. 30 of primary Zakat and tax objection committee in Riyadh for the year 1439 AH, in the lawsuit No. (36/38) filed by the appellant against the General Authority for Zakat and Income. The initial decision in the case included the following: