Читать книгу Ultimate guide on GCC Taxation - Павел Игоревич Герасимов - Страница 23

The following expenses are non-deductible:

● Wages, salaries, and whatever is so deemed, in cash or in kind, paid to an owner, partner, or shareholder, or to a member of their families, being a parent, spouse, sons/daughters, and siblings (this provision does not apply to stockholders in a stock company).

● Compensation in cash or in kind paid to a partner, shareholder, or to a family member, including a parent, spouse, sons/daughters, and siblings, for a property or service to the extent that the compensation is higher than the fair market value of such property or service at time of transaction.

● Entertainment expenses incurred for events such as parties, sports competitions, entertainment trips and activities, etc.

● Expenses of a natural person for personal consumption, such as personal withdrawals, dependants’ cost of living, or education.

● Any bribe or similar payment, which is considered an illegal practice in Saudi Arabia, even if paid abroad.

● Insurance commission in excess of 3 % of total premiums collected in Saudi Arabia through an agent or others and regardless of whether or not the agent is a partner.