SZTAC 332/2021/IR; 2020/283630/Z
The base is that it is permissible to deduct all ordinary and necessary expenses to achieve the income subject to zakat, provided that they are supported by supporting documents, and that they are related to realizing the income subject to zakat.
Background
On Tuesday 14/02/1443 AH corresponding to 21/09/2021 AD, The First Appeals Chamber for Income Tax Interventions and Disputes formed according to Royal Decree No. 65474 dated 23/12/1439 AH, held its session in the city of Riyadh to consider the appeal submitted on 18/03/1442 Ah corresponding to 03/11/2020 by …. (National ID no. ...) as the Taxpayer’s agent (in accordance with the power of attorney, and the appeal submitted on 18/03/1442 AH corresponding to 03/11/2020 by Zakat, Tax and Customs Authorityagainst the decision of the First Department for the Determination of Income Tax Violations and Disputes in the governorate of Jeddah no. (112-2020-IZ), issued regarding the lawsuit no. (Z-179-2018) regarding the Zakat assessment for the years from 2008 till 2012 filed by the Appellant against Zakat, Tax and Customs Authority (ZATCA) in which the decision of the Determination Department’s conclusion was as follows:
First: In Form: