Article 28: Joint Property

      Income or expenses relating to jointly-owned property are apportioned among partners in proportion to their respective shares in the property.

Article 29: Valuation

(a)   If calculation of the tax base or gross income involves non-cash properties, services, or other benefits, their fair market value is calculated as of the date it was recorded in the books for taxation purposes.

(b)   The market value of non-cash property transferred to an employee or any other service provider is determined without regard to any restriction on transfer of ownership.

Article 30: Currency Conversion

(a)    Gross income and tax base are calculated in Saudi riyal.

(b)    If calculation of income involves an amount in a currency other than the Saudi riyal, the amount shall be calculated for taxation purposes in Saudi riyal at the exchange rate declared by the Saudi Arabian Monetary Agency on the date of the transaction.

Article 31: Indirect Payments or Benefits

      The gross income of a taxpayer shall include any payment from which the taxpayer benefits directly or indirectly, as well as any payment dealt with according to its instructions, if such payment is considered income of the taxpayer if paid to the taxpayer directly.

Article 32: Compensation Received

      Compensation amounts received shall take the character of what is compensated for.

Article 33: Recoup of Expenses Deducted

(a)   If a taxpayer recoups expenses, loss, or previously permitted bad debt, the amount recouped is included in the gross income for the year in which it is recouped and shall take the status of the income related to expenses.

(b)   For the purpose of this Article, expenditure shall be considered recouped in the absence of the basis for the expenditure.

Article 34: Estimated Tax

(a)     If branches of foreign airline, sea or land freight and transportation companies operating in the Kingdom do not submit proof of their tax base in accordance with this Law, such tax base shall be determined as follows:

(1)    The tax base for branches of foreign airlines operating in the Kingdom shall be considered five percent (5 %) of the gross income realized in the Kingdom from tickets, cargo, mail or any other income. Such branches shall declare their gross income in the Kingdom at the times specified by Law.

(2)    The tax base of foreign freight, land and sea transportation companies operating in the Kingdom shall be considered five percent (5 %) of income realized in the Kingdom from charges for freight or any other income. Such branches are required to declare their income in the Kingdom at the times specified by Law.

(b)     The Minister shall have the power to authorize certain other sectors to use estimated taxation to determine their tax base and rates in accordance with the Regulations.

Article 35: International Agreements

      In case the conditions of a treaty or an international agreement to which the Kingdom is party are inconsistent with articles and provisions of this Law, the conditions of the treaty or international agreement shall prevail except for provisions of Article Sixty Three of this Law which are related to procedures of anti tax-avoidance.