SZTAC 37/2020/IR;Z/2018/1467
The provision represents an obligation of the establishment that is uncertain in its value, or the timing of its payment, or both. As for the expenses of vacations, tickets and bonuses, they represent in reality normal and necessary expenses for the activity, and are deducted from the profit to reach the quarter subject to zakat.
Background
On Tuesday 16/11/1441 AH corresponding to 07/07/2020 AD, the First Appeals Chamber for Income Tax Interventions and Disputes formed pursuant to Saudi Arabia Royal Order No. 65474/1439 dated 23/12/1439 AH based on Paragraph (b) of Article 67 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 02/11/1438 AH, met at its headquarters in the city of Riyadh, in order to consider the appeal submitted on 19/09/1439 AH Corresponding to 04/06/2018 AD, from/ ... on the decision of the Second Primary Tax Zakat Objection Committee in Riyadh No. (23) of 1439 AH, issued in Case No. (Z-2018-1467) filed by the appellant against the General Authority for Zakat and Income, in which the preliminary decision ruled as follows: