TaxIQ/Compliance Rule Library/rules
Every calculation in TaxIQ traces back to one of these configured rules (DEMO DATA)
RULE-GN-10 · v2026.3
Zakat base composition
The Zakat base is built from the starting financial position plus zakatable additions, less allowable deductions and deductible liabilities.
ZATCA Zakat Implementing Regulation · Article 4 · verified 2026-02-02
RULE-GN-11 · v2026.3
Starting financial position
Opening equity and retained earnings form the starting point of the Zakat base for the fiscal period.
ZATCA Zakat Implementing Regulation · Article 5 · verified 2026-08-10
RULE-GN-12 · v2026.3
Zakatable additions — long-term provisions
Long-term provisions funded from equity are added back to the Zakat base.
ZATCA Zakat Implementing Regulation · Article 6(2) · verified 2026-08-10
RULE-GN-13 · v2026.3
Zakatable additions — shareholder current accounts
Shareholder credit balances outstanding at year end are treated as an addition unless documented as commercial debt.
ZATCA Zakat Implementing Regulation · Article 6(5) · verified 2026-08-10
RULE-GN-14 · v2026.3
Allowable deduction — net fixed assets
Net book value of fixed assets financed by equity is deducted from the Zakat base.
ZATCA Zakat Implementing Regulation · Article 7 · verified 2026-08-10
RULE-GN-15 · v2026.3
Allowable deduction — long-term investments
Investments held for longer than one fiscal year are deducted where supporting evidence exists.
ZATCA Zakat Implementing Regulation · Article 7(3) · verified 2026-08-10
RULE-GN-16 · v2026.3
Deductible liabilities — long-term financing
Long-term financing used to fund deductible assets reduces the Zakat base.
ZATCA Zakat Implementing Regulation · Article 8 · verified 2026-08-10
RULE-GN-17 · v2026.3
Zakat rate application
The applicable Zakat rate configured in the rule library is applied to the final Zakat base.
ZATCA Zakat Implementing Regulation · Article 9 · verified 2026-02-02
RULE-GN-18 · v2026.3
Income tax — non-Saudi share
Corporate income tax applies to the share of net adjusted profit attributable to non-Saudi ownership.
Saudi Income Tax Law · Article 2 · verified 2026-08-10
RULE-GN-19 · v2026.3
Income tax rate application
The configured statutory income tax rate is applied to the non-Saudi taxable base.
Saudi Income Tax Law · Article 7 · verified 2026-08-10
RULE-GN-20 · v2026.3
Separation of Zakat and income tax
Zakat and income tax are computed and reported as independent obligations and never merged.
Saudi Income Tax Law · Article 2(1) · verified 2026-08-10
RULE-TD-21 · v2026.3
Tax depreciation groups
Assets are allocated to statutory depreciation groups; each group carries a configured declining balance rate.
Saudi Income Tax Law · Article 17 · verified 2026-08-10
RULE-TD-22 · v2026.3
Declining balance computation
Tax depreciation is computed on the group balance using the declining balance method unless an election applies.
Saudi Income Tax Law · Article 17(3) · verified 2026-08-10
RULE-TD-23 · v2026.3
Straight-line election
A change to straight-line tax depreciation requires documented approval and applies prospectively.
Saudi Income Tax Law · Article 17(6) · verified 2026-08-10
RULE-GN-24 · v2026.3
Asset classification evidence
Every classification must reference the acquisition document and the configured category rule.
ZATCA Guidance — Fixed Assets · Section 3 · verified 2026-02-02
RULE-GN-25 · v2026.3
Bad debt deductibility
Bad debts are deductible only when written off in the books and supported by recovery evidence.
Saudi Income Tax Law · Article 13 · verified 2026-08-10
RULE-GN-26 · v2026.3
Loss carry-forward
Carried-forward losses may offset taxable profit subject to the configured annual limitation.
Saudi Income Tax Law · Article 21 · verified 2026-08-10
RULE-GN-27 · v2026.3
Annual filing requirement
The Zakat and income tax declaration is due within the configured window after fiscal year end.
ZATCA Filing Rules · Article 60 · verified 2026-08-10
RULE-GN-28 · v2026.3
E-invoicing integration
Invoices must be issued through an integrated e-invoicing solution with the required QR content.
ZATCA E-Invoicing Regulation · Article 4 · verified 2026-08-10
RULE-GN-29 · v2026.3
Related party disclosure
Transactions with related parties are disclosed with pricing evidence in the filing package.
Transfer Pricing Bylaws · Article 14 · verified 2026-08-10