[Except for capital companies, the employer’s contributions on behalf of the employee to a statutory pension fund in accordance with the Kingdom’s regulations may be deducted, provided that the allowable deduction per employee does not exceed 25% of the employee’s income before accounting for the employer’s contributions.
Capital companies are allowed, for tax purposes, to deduct their contributions to retirement funds, social insurance funds and any fund established to provide employees end of service benefits or compensation for their medical charges; provided that:
The deduction shall not exceed the value of the non-funded obligations of these funds and the accrued amounts thereto as of the beginning of the fiscal year in which the deduction is made.
Such funds must be separate legal entities, whether established in the Kingdom or abroad.
No deduction is allowed in respect of employees' contributions to retirement funds.]
Capital companies must provide the Authority with information regarding such funds, in accordance with what is specified by the Regulations.