Читать книгу Ultimate guide on GCC Taxation - Павел Игоревич Герасимов - Страница 19

Employers’ contributions to employees’ pension funds or savings funds established under Saudi Arabia’s rules and regulations are deductible, provided that such contribution, one payment or in aggregate, is not in excess of 25 % of the employee’s income before the employer’s contributions and that the fund meets the following criteria:

● The fund is established according to special provisions that clearly stipulate conditions of subscription and rights of subscribers.

● Such obligation is stated in the employment contract or in the Articles of Association of the establishment.

● The fund has a character independent of the establishment and has separate accounts audited by an independent CPA.

A capital company is allowed to deduct its contribution to a retirement fund, a social insurance fund, or any other fund established for the purpose of settling employee end-of-service benefits or to meet staff medical expenses, provided they meet certain conditions. It should be noted that there is a notification requirement to the GAZT in order to claim any deduction of the contribution.