SZTAC 85/2020/IR; 2018/1513/Z
Ticket expenses, travel expenses, and accommodation paid to the partners in the professional company whose activity is based on the effort made by the partner or employee to achieve the company’s business. Therefore, these expenses are considered necessary for the company’s activity and are deductible expenses.
Background
On Wednesday 20/02/1442 AH corresponding to 07/10/2020 AD, the First Appeals Chamber for Income Tax Interventions and Disputes formed under Saudi Arabia Royal Decree No. 65474/1439 dated 23/12/1439 AH based on Paragraph (b) of Article 67 of Income tax system issued by Saudi Arabia Royal Decree No. M1/1425 dated 15/1/1425 AH and amended by Saudi Arabia Royal Decree No. M113/1438 dated 2/11/1438 AH, met at its headquarters in the city of Riyadh, in order to consider the appeal submitted on 19/10/1438, corresponding to 13/07/2017 AD, from / Company ...., On the decision of the Second Primary Tax Zakat Objection Committee in Jeddah, No. (23) for the year 1438 AH, issued in Case No. (4791/22/1435) filed by the appellant against The General Authority for Zakat and Income, in which the preliminary decision ruled the following: