SZTAC 137/2020/IAR;1539/2018/Z
Government subsidies are considered as income as they are received in cash and increase the total zakat assets (cash) of the taxpayer.
The value of (estimated) government grants that are included in the reserves according to accounting standards is zakat within the taxpayer's equity.
Background
First: Acceptance of the taxpayer's objection in form, to be submitted by a qualified person within the legally prescribed deadline.
Second: In merits:
1- The approval of the Authority in adding an amount of (22,338,280) riyals to the net accounting profit of the taxpayer for the year 2013.
2- The authority endorsed calculating the legal zakat on the taxpayer’s adjusted net profit for the year 2013.
3- The approval of the Authority in calculating the legal zakat on the taxpayer’s adjusted net profit for the year 2013 AD; Consequently, the investments are not discounted, all in accordance with the reasons stated in the decision.
And since this decision was not accepted by (company...), It submitted to the chamber an appeal statement that included the following summary: