SZTAC 99/2020/IAR;2018/1566/Z
The balance of the provision related to the delay fines related to the implementation shown in the statement of financial position of the taxpayer is added to the Zakat base, and the profit is not adjusted for the expenses of those delay fines.
Background
On Monday 22/04/1442 AH corresponding to 07/12/2020 AD, the First Appeals Chamber for Income Tax Interventions and Disputes formed pursuant to Saudi Arabia Royal Decree No. 65474/1439 dated 23/12/1439 AH based on Paragraph (b) of Article 67 of the Law Income tax issued by Saudi Arabia Royal Decree No. M1/1425 dated (15/10/1425 AH) and amended by Saudi Arabia Royal Decree No. M113/1438 dated 20/11/1438 AH, met at its headquarters in the city of Riyadh,
This is to consider the appeal submitted on 18/08/1438 AH from/company (...) Trading and Contracting Company against the decision of the Second Primary Tax Zakat Objection Committee in Riyadh, No. (15) for the year 1438 AH, issued in Objection No. (37/37) filed from the appellant in the face of the General Authority for Zakat and Income, in which the preliminary decision ruled the following: