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Arabian cement company saudi joint stock company

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ARABIAN CEMENT COMPANY(Saudi Joint Stock Company)NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAs at 31 December 20214124. ACCRUED ZAKAT AND INCOME TAX (continued)c)Zakat and tax status (continued)The Company has submitted the Zakat returns for the years ended 31 December 2014 to 2020and obtained the unrestricted Zakat certificate for the year 2020.The Zakat, Tax and Customs Authority has issued the Zakat and withholding tax assessmentfor the two years ended 31 December 2019 and 2020, which showed the total differences inZakat and withholding tax due and a delay fine of SR 1.8 million.The Company has paid the zakat due on the non-objectionable items in the amount of SR 83thousand, in addition to paying the maximum amount of zakat differences due under the zakatassessment at 25% according to the Regulations, which amounts to SR 414 thousand. TheCompany has submitted an objection on the zakat assessment for the two years mentionedabove, which is still under study by the ZTCA to date.Qatrana Cement Company (subsidiary)JordanIncome tax returns were audited by the Income and Sales Tax Department until the end of 2018.The Company also filed income tax returns to the Department until the end of 2020.With regard to sales tax, sales tax returns were audited by the Income and Sales Tax Departmentuntil the end of 2018.The Company also submitted sales tax returns to the Department for theend of December 2021.The Income and Sales Tax Department reviewed the income tax for the Company for the year2014 and issued its initial decisions requesting the Company to pay tax differences resultingfrom a difference in the interpretation of the decision of the Investment Board exemptions.Accordingly, the objection was submitted to the objection committee in the Income TaxDepartment. On 21 June 2020, the decision in relation to the objection was issued not tocalculate investment promotion exemption on profits for the year 2014. However, the Companysubmitted its objection against the Department’s decisions, and the files were transferred to thecourt to settle the dispute, and the Company did not calculate an additional provision for incometax as, according to the opinion of the legal advisor that the Company has strong reasons to winthis case. The case is currently under review by the court of first instance.d)Deferred tax assets and liabilitiesMovement on deferred tax assets was as follow:2021SR ('000)2020SR ('000)Balance, beginning of the year27,06925,444Additions and amendments during the year1961,023Transferred to the income tax provision(5,315)602Balance at end of year21,95027,069
ARABIAN CEMENT COMPANY(Saudi Joint Stock Company)NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAs at 31 December 20214224. ACCRUED ZAKAT AND INCOME TAX (continued)d)Deferred tax and liabilities (continued)The deferred tax assets for the year ended 31 December 2021 were calculated in accordancewith Income Tax Law No. (34) of the year 2014 and its amendments, which came into effecton 1 January 2019. According to this law, the legal tax rate on the Company is 17%, in additionto the national contribution rate of 1% (2020: 16% in addition to the national contribution rateof 1%).

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Term
Fall
Professor
N/A
Tags
Balance Sheet, Generally Accepted Accounting Principles, Saudi Joint Stock Company, Arabian Cement Company

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