Tax brochure

Tax brochure comprehensive guide to understanding taxes in the Kingdom of Saudi Arabia. What are taxes? Taxes are the amounts that the state collects from individuals or institutions and companies, aiming to finance public services and support developmental projects. Types of taxes in the Kingdom of Saudi Arabia The types of taxes in the Kingdom of Saudi Arabia vary, and among the most prominent are: Value-added tax: It is an indirect tax imposed on goods and services at the stages of sale and purchase. Its current rate is 15%, and it is applied to most products and services. Income tax: It is imposed on individuals who earn income from sources outside the Kingdom, such as employees' and foreign workers' salaries. Excise tax: It is imposed on certain goods considered harmful to health or the environment, such as tobacco and soft drinks. The rate is 100% on tobacco and 50% on soft drinks. How to calculate the value-added tax? The value-added tax is calculated based on the selling price or the value of the service, and added to the price of the product or service. Example: If the price of a commodity is 200 riyals, and a 15% value-added tax is applied, the tax amount will be 30 riyals, making the total price 230 riyals. The importance of taxes Taxes play a vital role in financing the state's general budget, providing basic services to citizens such as education, health, and infrastructure. They also contribute to organizing the economy and encouraging investment. Name: ____________________ Grade: ____________________