GTL Summary:

Ministerial Resolution No. 1535 of 2004 constitutes the Executive Bylaws for the Saudi Arabian Income Tax Law, providing detailed rules for its application. The provided articles clarify the tax treatment of specific income types, focusing on compensation payments. It stipulates that the taxability of compensation mirrors the item being compensated. Specifically, payments received for damaged trading stock are classified as taxable income. In contrast, compensation for assets is handled in accordance with the capital gains provisions specified under Article 9 of the parent Income Tax Law, ensuring consistent and clear regulatory application.

Document Type: ERS - Executive Regulations
Law: Income Tax Law (Royal Decree No M/1 - 21 Feb 2004)
Decision Number: executive-regulations-1535-article-13
Year: 2019
Country: 🇸🇦 KSA
Official Name: Article 13 - Compensation Receipts
Last updated at: 2026-01-05 08:39:39 UTC

Article 13 - Compensation Receipts

Compensation payments received take the character of the thing that is compensated as far as being subject to tax or not.

Compensation receipts for damage in goods (trading stock) are deemed to be income subject to tax, but compensation receipts for assets are dealt with in accordance with Article 9 of the Income Tax Law.

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