SZTAC 45/2021/IR;2018/1751/I 1

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Investments in local companies shall not be considered exempt if there is evidence of buying and selling activity on these investments for their exit from qualifying assets.

Background

On Sunday, 06/09/1442 AH corresponding to 18/04/2021 AD, the First Appeals Chamber for Income Tax Interventions and Disputes convened in accordance with Saudi Arabia Royal Decree No. 65474/1439 dated 23/12/1439 AH, at its headquarters in Riyadh, to review the appeal submitted on 24/03/1436 AH by [Company Name] against Decision No. (3) issued by the Second Primary Appeals Committee for Zakat and Income Tax in Riyadh, dated 1436 AH, regarding appeal No. (35/22) against the tax assessment for the years from 2007 AD to 2011 AD, filed by the Appellant against the General Authority for Zakat and Income. The primary decision in this regard was as follows:

First: In form,

Accepting the objection of the appellant, [Company Name], from a formal perspective for its submission within the statutory and lawful timeframe.

Second: In merits,

  • Resolution of the dispute regarding the appellant's objection to the principle of payments for technical services rendered in the year 2011, based on the reasons provided in the decision.