SZTAC 110/2020/IAR;2018/1496/Z
Reimbursement of unacceptable depreciation differences into net amount of the fixed assets is a fundamental principle in Zakat calculation.
The origin is determining the Zakat Base of the Zakat payer in accordance with the outcome of the difference between positive and negative elements included in calculating the Zakat Base without being limited to the value of the adjusted earnings.
Background
On Saturday 21/03/1442 H.D. corresponding to 07/11/2020 AD, First Appeals Chamber for Income Tax Interventions and Disputes, formed under the Saudi Arabia Royal Order No. 65474/1439 on 23/12/1439 H.D. according to Provision B of Article 67 of the Income Tax Act issued by the Saudi Arabia Royal Decree No. M1/1425 on 15/01/1425 H.D. and amended by the Saudi Arabia Royal Decree No. M113/1438 on 02/11/1438 H.D, met at its headquarter the city of Riyadh to examine he appeal filed on 02/09/1439 H.D. by ……….Company against the decision. No. 19 of the Second Zakat and Tax Primary Objections Committee in Riyadh, issued regarding the objection No. (38/68) lodged by the Appellant against GAZT (the General Authority of Zakat and Tax). Where preliminary decision was as follows.