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Document Type: Tax Law Article
Law: Income Tax Law (Royal Decree No M/1 - 21 Feb 2004)
Article Number: 6
Country: 🇸đŸ‡Ļ KSA
Location: Chapter 3 - Tax Base and Tax Rates
Order: 6

Article 6 - Tax Base

Article 6 - Tax Base

Chapter 3 - Tax Base and Tax Rates

Article 6 - Tax Base

  1. [The tax base of a resident capital company shall be the shares of non-Saudis and the shares of shareholders engaged in the production of oil and hydrocarbons from their taxable income from any activity from sources in the Kingdom after deducting expenses permitted under this Law.][7]

  2. The tax base of a resident non-Saudi natural person shall be his taxable income from any activity from sources within the Kingdom after deducting expenses permitted under this Law.

  3. The tax base of a non-resident who performs an activity in the Kingdom through a permanent establishment shall be his taxable income arising from or related to the activity of such establishment after deducting expenses permitted under this Law.

  4. The tax base of each natural person shall be determined separately.

  5. [The tax base of a capital company shall be computed independently from the tax base of its shareholders or their affiliates regardless of whether the company's accounts are consolidated with the accounts of another person for accounting purposes.][8]

  6. [The tax base of a person engaged in the production of oil and hydrocarbons shall be his taxable income after deducting expenses permitted under this Law; this shall not include the tax base relating to his investment in natural gas.][9]

  7. [The tax base of a person engaged in natural gas investment shall be his taxable income in such investment after deducting expenses permitted under this Law. This tax base shall be separate from the tax base relating to his other activities.][10]

Footnotes

[7]Amended by RD No M/131 dated 29/12/1438H (20 September 2017) with effect from 1 January 2018. Prior to the amendment, the clause read as follows:

'The tax base of a resident capital company is the shares of non-Saudi partners in its taxable income from any activity from sources within the Kingdom minus expenses permitted under this Law'

[8]Amended by RD No M/131 dated 29/12/1438H (20 September 2017) with effect from 1 January 2018. Prior to the amendment, the clause read as follows:

'The tax base of a capital company shall be determined separately of its shareholders or partners.'

[9]Amended by RD No M/70 dated 11/07/1439H (28 March 2018) with effect from 1 January 2018. Prior to the amendment, the clause read as follows:

'The tax base of the person engaged in oil or hydrocarbons production is its taxable income less allowable expenses under these regulations'

[10]Inserted by RD No M/70 dated 11/07/1439H (28 March 2018) with effect from 1 January 2018.