ACCT 422 Assignment (1)

Assignment (1)

Deadline: Saturday 05/03/2022 @ 23:59

Course Name: Tax and Zakat Accounting Student’s Name:
Course Code: ACCT 422 Student’s ID Number:
Semester: 2ND CRN:
Academic Year: 1443 H

For Instructor’s Use only

Instructor’s Name: Khaled Almuaqel
Students’ Grade: /10 Level of Marks: High/Middle/Low


  • 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

Question: 1

Explain the followings in your own words: (2 marks)

  1. What do you mean by tax system in KSA? Is tax system is good or bad? Support your answer
  2. Under the Tax Law, who are the person or artificial person subject to the tax in Saudi Arabia?
  3. How many types of tax systems are prevailing in the KSA?
  4. The Tax Law provides that income from the following specific types of activities/sources is considered taxable in KSA:

Q-2-What do you mean by Zakat, in your opinion what are the certain updates on the Tax and Zakat regulations in kingdom of Saudi Arabia? (2 marks)

Question 3

A resident capital company has both Saudi and non-Saudi shareholders and its capital is divided between them equally. Net income for 2020 was 6,000,000 SR and was adjusted according to the tax rules applicable in the kingdom is 6,400,000 SR. (2 Marks)


  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 2,000,000 SR and give explanation about dividends

Question 4

Now a days Saudi Government is focusing the taxation revenue. “Saudi Arabian government imposing different types of taxes on commodities, services as well as residency” (2 marks)

Support your answer to the above case study and differentiate between selective commodities tax and value added tax in your own words. Compare the VAT with past and present

Question 5

A taxpayer incurred expenses of 150,000 SR to improve a depreciable asset at a book value of 950,000 SR. What is the amount of expenses deductible by the tax law? (2 mark)


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