Zakat and the taxation system in Saudi Arabia Research Proposal

Zakat and the taxation system in Saudi Arabia - search Proposal ExampleThese taxes are income tax, Zakat, Natural shooter Investment tax, withholding tax, capital gains tax, and indirect taxes. beneath income tax, the government of Saudi Arabia targets the taxable income of joint stock companies, Saudi effective organizations, partnership businesses, contractors, foreign companies, and free-living professionals (Janjua, 39).Zakat is a religious wealth tax, the government levies on the citizens of Saudi-Arabia, and other nationals of the GCC. This tax is levied from the profits they obtain in the various companies that these nationals operate in Saudi Arabia (Hefner, 39). The rate of calculating this tax is 2.5% of the capital employed. The Natural Gas Investment Tax is charged on any person involved in the business of inseparable gas, and other businesses related to the production and sale of natural gas. Withholding tax is a deducted from any pay made to an individual who is a non-resident of Saudi Arabia (Otto, 28). The people targeted do not have any legal registration that allows them to engage in economic activities in Saudi Arabia. Capital gain taxes are levied on the gains made by the sale of business assets, or an individuals fixed assets (Janjua, 42).Despite the course credit of these taxes by the Ministerial Resolution 278, this research proposal concentrates on the tax system referred to Zakat. To understand the temperament of this research, this proposal will explain this concept of Zakat, and how it relates to Sharia law. Sharia law is one of the laws that govern the regime of Saudi Arabia. Saudi Arabia is an Islamic State. This has made the country to develop a system whereby everybody residing within the Saudi Arabia has to live in accordance to the principles and tenets of Islam. Paying alms to the poor is one of the teachings of Islam. Zakat Taxation system is developed from this teaching of paying alms to the poor (Hefner, 36). Thi s research proposal analyzes the aims and