SZTAC 132/2021/IR; 1646/2018/ZIW

The principal is that a non-resident is subject to tax on any amount it receives from any source in the Kingdom, and withholding tax shall be required unless the taxpayer proves that it is not subject to tax or that taxes on them have already been paid.

Background

On Tuesday, 19/11/1442 AH corresponding to 29/06/2021, the First Appellate Circuit of Income Tax Violations and Disputes constituted according to Saudi Arabia Royal Order No. 65474/1439 dated 23/12/1439 AH, held at its headquarters in Riyadh, to consider the appeal brought by ..... Company on 12/05/1438 AH, to challenge the First Circuit of the First Instance Tax Zakat Objection Committee in Riyadh decision No. (6) of 1438 issued in the tax assessment from 2010-2012 case filed by the appellant against GAZT, in which the Preliminary Decision determined that:

First: To admit in form the objection to the tax assessment from 2010-2012 filed by ………………………. Company, in accordance with the recitals in this decision.

Second: On merits:

To dismiss the taxpayer’s objection to social insurance item.
To dismiss the taxpayer's objection regarding his request to deduct school fees from Zakat base for 2010 to 2012.