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 Determination
of Tax Base : Presumptive Cases
The tax base of some taxpayers may be determined under a presumptive method
in any of the following:
1- The taxpayer has no reliable accounts to determine the tax base.
2- The Department has not accepted the taxpayer’s books due to essential
shortfalls in them.
3- The taxpayer has failed to make timely filing of the return and attached
accounts.
4- Nonresident taxpayers who cannot file accounts.
5- Branches of foreign air transport companies.
The rate used to determine the tax base is different from one activity to
another and depends on conditions of each case and on other indicative factors.
However, the rate will never be less than 15 percent of the taxpayer’s
gross receipts. Tax base of some special activities are determined as follows:
- Consulting Services at a minimum rate of 20 percent.
- Management Fees at a rate of 100 percent.
- Payments for using intangible rights, such as royalties, concession rights,
and patents at a rate of 100 percent.
- Branches of foreign air transport companies at a minimum rate of 10 percent
of income realized in the Kingdom from tickets, luggage, freight, mail and
any other income.
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Brief Information on DZIT
