Tax and Zakat Accounting

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Assignment (1)

Course Name: Tax and Zakat AccountingStudent’s Name:
Course Code:  ACCT 422Student’s ID Number:
Semester: FirstCRN:12012
Academic Year: 1445 H

For Instructor’s Use only

Instructor’s Name: Khaled Almuaqel
Students’ Grade:           /15Level 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 Question(s):                                                                   (Marks 15)

Question 1: List the primary sources of income that are considered accrued in the Kingdom according to Article (5) of the income tax law. (4 Marks)

Question 2: Discuss the concept of residency in the Saudi Income Tax Law according to article 3. (4 Marks)

Question 3: Using your own words, define Cash-Basis Accounting and Accrual-Basis Accounting under Saudi tax regulations.(4 Marks)

Question 4: A resident capital company has both Saudi and non-Saudi shareholders and its capital is divided between them equally. Net income for 2019 was 3,200,000 SR and was adjusted according to the tax rules applicable in the kingdom to 3,600,000 SR. (3 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 800,000 SR.

Answer