Assignment Question(s): (15.0 Marks) Each Questions Carries 1.5 Marks)
- A resident capital company has a tax base of SAR 1,000,000 and Saudi shares in its ownership is 30%.
- Required: What is the tax due?
Answer:
2.Taxpayer has a piece of land recorded at balance sheet a cost of SAR 100,000 and during the tax year, he incurred expenses of SAR 20,000 to improve the land.
Required: What is the tax treatment for expenses incurred?
Answer:
3.Taxpayer has an equipment with a book value of SAR 100,000 and during the tax year, he incurred expenses of SAR 20,000 to improve the land.
Required: What is the tax treatment for expenses incurred?
Answer:
4.Taxpayer purchased an equipment of SAR 100,000 to be used in the research and development activities.
Required: What is the deductible expenses?
Answer:
5.Bank ALBELAD recorded the following journal entry in 2021:
Dr. Bad debt expenses SAR 5,000,000
Cr. Allowance for doubtful accounts 5,000,000
Required: What is the tax treatment for those provisions?
Answer:
6.Taxpayer working as a manufacturing company recorded the following journal entry in 2021:
Dr. Bad debt expenses SAR 100,000
Cr. Allowance for doubtful accounts 100,000
Required: What is the tax treatment for those provisions?
Answer:
7.Non-resident person received income from Saudi company against services provided in the kingdom.
Required: Is non- resident person subject to income tax? If yes what is the name of the tax and its tax rate.
Answer:
8.When Saudi persons are subject to income tax According to the income tax law in the kingdom?
Answer:
9.Taxpayer disposed of a non-depreciable asset with a cost base of SAR 100,000 by gift.
Required: What is the tax treatment for the assets disposed of?
Answer:
10.Taxpayer has written off accounts receivable with book value of SAR 50,000 not previously taxable.
Required: Is this bad debt deductible expense?
Answer:
