Course Name: Tax and Zakat Accounting, explain, no hand writing or pictures

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)

Required:

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 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)