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?
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?
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?
4.Taxpayer purchased an equipment of SAR 100,000 to be used in the research and development activities.
Required: What is the deductible expenses?
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?
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?
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.
8.When Saudi persons are subject to income tax According to the income tax law in the kingdom?
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?
10.Taxpayer has written off accounts receivable with book value of SAR 50,000 not previously taxable.
Required: Is this bad debt deductible expense?