Article 29 of the KSA Income Tax Law establishes the methodology for valuing non-monetary transactions for tax purposes. It stipulates that when the calculation of the tax base or gross income includes non-cash properties, services, or other benefits, their valuation must be based on their fair market value. The specific point in time for this valuation is the date the item was recorded in the entity's books for taxation. The article further clarifies that for any non-cash property transferred to an employee or another service provider, its market value must be determined without regard to any restrictions on the transfer of its ownership.
Chapter 7 - Additional Rules for Determining the Tax Base
Article 29 - Valuation
If calculation of the tax base or gross income involves non-cash properties, services, or other benefits, their fair market value shall be calculated as of the date it was recorded in the books for taxation purposes.
The market value of non-cash property transferred to an employee or any other service provider shall be determined without regard to any restrictions on transfer of ownership.
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