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Document Type: BL - Bylaws
Law: Income Tax Law (Royal Decree No M/1 - 21 Feb 2004)
Decision Number: 1535-article-37
Year: 2019
Country: 🇸đŸ‡Ļ KSA
Official Name: Article 37 - Deductible Expenses

Ministerial Resolution No. 1535 of 2004 [Executive Bylaws]

Executive Regulations of the Income Tax System

Article 37 - Deductible Expenses

  1. [Deductible expenses from the income of the taxpayer engaged in natural gas investment are those expenses deductible under Article 12 of the Income Tax Law and Article 9 of these Regulations. Royalty and surface rental amounts are considered deductible and are determined on an accrual basis.

  2. It is not permissible to allocate expenses relating to the natural gas investment base to the expenses relating to the oil and hydrocarbons production base of the taxpayer engaged in both oil and hydrocarbons production and natural gas investment.

  3. The method of allocating expenses between both bases shall be determined as specified by the Ministry of Energy, Industry and Mineral Resources.][27]

Footnotes

[27]Amended by Ministerial Resolution No. 2568 dated 5/9/1440H (10/5/2019). Prior to amendment, Article 37 read as follows:

'Expenses deductible from income which is subject to the natural gas investment tax are those expenses deductible under Article 12 of the Income Tax Law. Royalty and surface rental amounts are considered deductible and are determined on an accrual basis.'