This essay focuses on taxpayers in similar financial condition. incomes pay a larger share of income in taxes than those with higher incomes.

taxpayers in similar financial condition

Explain the followings in your own words: (200 words )

Define and discuss persons subject to tax in accordance with the Saudi Tax Law?

1. Fairness, or equity, means that everybody should pay a fair share of taxes. There are two important concepts of equity: horizontal equity and vertical equity.

details;

• Firstly, Horizontal equity means that taxpayers in similar financial condition should pay similar amounts in taxes.
• secondly, Vertical equity is just as important, however. Vertical equity means that taxpayers who are better off should pay at least the same proportion of income in taxes as those who are less well off. equity involves classifying taxes as regressive, proportional, or progressive.
  • thirdly, Regressive tax: A tax is regressive if those with low incomes pay a larger share of income in taxes than those with higher incomes. Almost any tax on necessities, such as food purchased at a grocery store, is regressive because lower income people must spend a larger share of their income on these necessities. Oklahoma’s sales tax is one example.

How many types of tax systems are imposed in the KSA?

Question 2
“As we know that Saudi Arabian government imposing different types of taxes on commodities, services as well as residency”
Required: Explain and discuss the above sentence.You answer should differentiate between selective commodities tax and value added tax. Answer in your OWN words. ( 200 words).

Question 3
A resident capital company has both Saudi and non-Saudi shareholders and its capital is divide between them equally. Net income for 2019 was 3,000,000 SR and was adjust according to the tax rules applicable in the kingdom is 3,200,000 SR.
Require:

Compute the tax amount to be pay by the company.
Compute the tax amount to be paid by non-Saudi shareholders assuming that dividends paid in cash of 1,000,000 SR.