SALEH_ACCT422

Overview

Assignment (1)

Deadline: Saturday 12/07/2025 @ 23:59

Course Name: Tax and Zakat Accounting Student’s Name:

Course Code: ACCT 422 Student’s ID Number:

Semester: Summer CRN:

Academic Year: 1446 H

For Instructor’s Use only

Instructor’s Name:

Students’ Grade: /15 Level of Marks: High/Middle/Low

Instructions – PLEASE READ THEM CAREFULLY

The Assignment must be submitted on Blackboard (WORD format only) via allocated folder.

Assignments submitted through email will not be accepted.

Students are advised to make their work clear and well presented, marks may be reduced for poor presentation. This includes filling your information on the cover page.

Students must mention question number clearly in their answer.

Late submission will NOT be accepted.

Avoid plagiarism, the work should be in your own words, copying from students or other resources without proper referencing will result in ZERO marks. No exceptions.

All answers must be typed using Times New Roman (size 12, double-spaced) font. No pictures containing text will be accepted and will be considered plagiarism.

Submissions without this cover page will NOT be accepted.

Assignment 1

Answer all Questions (Maximum Marks 15)

Q1. Define the concept of residency according to Saudi Tax law. Explain in your answer when a natural person and a company are considered residents. (3 Marks)

Answer:

Q2. A resident capital company has both Saudi and non-Saudi shareholders and its capital is divided between them equally. Net income for 2023 was 3,000,000 SR and was adjusted according to the tax rules applicable in the kingdom is 3,200,000 SR. (4 Marks)

Required:

1. Compute the tax amount to be paid by the company.

2. Compute the tax amount to be paid by non-Saudi shareholders assuming that dividends paid in cash of 1,000,000 SR.

Answer:

Q3. The following information was taken from the zakat giver’s return for 2023:

1. He owns a Building with a book value of SR 900,000 and re-evaluated according to its market value of SR 1, 200,000. The building earned a yearly rental income of SR 100,000 and the actual expenses of getting the income of SR 20,000, due liabilities of SR 30,000 and long-term liability for 50,000.

2. He also owns cars with a book value of SR 250,000 and re-evaluated according to its market value of SR 150,000. The cars earned a yearly rental income of SR 75,000 and the actual expenses of getting the income of SR 15,000, due instalments of SR 30,000.

Required: calculate the zakat due for 2023 assuming the receptacle reaches the NISAB.

Answer: (4 Marks)

Q4. Articles 12 and 13 of the Saudi Income Tax Law differentiate between deductible and non-deductible expenses. Explain the difference between these expenses, and list five non-deductible expenses. (4 Marks)

Answer: