This essay focuses on Introduction to the Taxes System. Definitions • Article 1 includes definitions for use when using interpreting the income tax law
in Saudi Arabia; Persons Subject to Income Tax Article 1: Definitions • Article 1 includes definitions for use when using interpreting the income tax law • Each word will carry the meaning beside it unless the context indicates otherwise • Please refer to the meanings throughout the course Article 2: Persons Subject to Taxation • A resident capital company • A resident non-Saudi natural person who conducts business in the Kingdom • A non resident who conducts business in the Kingdom through a permanent establishment • A non resident with other taxable income from sources within the Kingdom •
A person engaged in the field of natural gas investment • A person engaged in the field. It is of oil and hydrocarbons production Article 3: Concept of Residency . A natural person is consider a resident if he meets any of the following conditions. It is He has a permanent place of residence. There in the Kingdom and resides in the Kingdom for a total period of not less than 30 days. It is He resides in the Kingdom for a period of not less than 183 days in the taxable year • A company is consider a resident in the Kingdom during the taxable year if it meets any of the following conditions: It is form in accordance with the Companies Law Its central management is locate in the Kingdom