постановление о подоходном налоге шарджи 1968 года

SHARJAH INCOME TAX DECREE 1968
ARTICLE 1

There shall be imposed upon the taxable income of every
chargeable person for each income tax year ending after the
date of this Decree tax at the rates hereinafter specified.

ARTICLE 1
In this Decree unless the subject or context otherwise requires:

(1) "the Ruler" means the Sheikh of Sharjah and its
dependencies;

(2) "the Sheikhdom" means all the territories within the
jurisdiction of the Ruler and includes the territorial waters
appurtenant thereto and the area of the sea bed and sub
soil, lying beneath the high seas of the Arabia Gulf and
Oman Gulf contiguous to the territorial waters over which
the Ruler exercises jurisdiction and control;

(3) "chargeable person" means 3 body corporate
wheresoever incorporated, or each and every branch
thereof, carrying on trade or business at any type during
an income tax year through a permanent establishment
situated in the Sheikhdom whether directly or through the
agency of another body corporate, and not entitled under
an Agreement with the Ruler to exemption from liability to
income tax; two or more such branches of a body

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corporate so carrying on trade shall each be treated as
separate chargeable persons; the fact that a body
corporate has a secondary body corporate carrying on
trade or business through a permanent establishment in
the Sheikhdom shall not of itself constitute that parent
body corporate as a chargeable person;

carrying on trade or business" means

(a) the selling in the Sheikhdom of goods or rights
thereto.

(b) the operating of any other manufacturing industrial or
commercial enterprise in the Sheikhdom.

(c) the letting of any property located in the Sheikhdom,

(d) the rendering of services in the Sheikhdom,

but does not include the mere purchasing in the

Sheikhdom of goods, or rights thereto.

“taxable income” means the net income of a chargeable
person arising in the Sheikhdom and derived from
carrying on trade or business after the deductions
allowed by this Decree have been made; ,

"income tax year" means the year commencing on ist
January 1968 and each subsequent year commencing
on the First day of January;

"Director" means the Director of Income Tax who shall be
appointed as provided in Article 3 of this Decree;

"personnel of the Director" means the official ‘and other
persons which shall be appointed in Article 3: of this

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(4)

(5)

(6)

(7)

(8)

Decree employed in the carrying out of the duties of the
office of the Director;

(9) The words "year", "annual" and "month" shall respectively
be construed as referring to the Gregorian Calendar and
not any other;

“permanent establishment" in relation to a body
corporate means a branch, management or other fixed
place of business and does not include an agency unless
the agent has and habitually exercises authority to
conclude contracts on behalf of such body corporate;

“physical asset" means any tangible asset purchased or
created by capital expenditure other than petroleum
exploration, petroleum producing and other wells;

"intangible asset" means

any expenditure wherever incurred by a
chargeable person before the commencement of
carrying on trade or business for the purpose of
such trade or business, other than expenditure in
respect of physical assets qualifying for allowance,
under Article 6 (1) (c) and (d), and

any capital expenditure wherever incurred by a
chargeable person, after the commencement of
carrying on trade or business, other than
expenditure in respect of physical assets and any
expenditure referred to in Article 6 (2) (a) (i) of this
Decree. oo

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(a)

(10)

(12)

"oil" means crude petroleum or other natural
hydrocarbons, produced within the Sheikhdom and
exported therefrom;

"producing company” means a body corporate which has
rights to produce oil under an agreement with the Ruler
and produces oil or on whose behalf oil is produced. And
reference to “oil of a producing company" shall be
construed as references to oil produced by or on behalf
of such producing company;

"dealing in oil" means dealing by any chargeable person
in oil or in rights to oil, reference to dealings shail be
construed accordingly;

"oil dealt in" means that quantity of oil of a producing
company dealings in which gave rise to taxable income
for an income tax year;

"duties" to be included in the "Credit Aggregate" include
all duties except (a) duties payable in respect of imports
for the personal use of individuals and (b) duties payable
in respect of imports for the purposes of a producing
company if such duties are payable pursuant to the
terms of an agreement with the Ruler by virtue of which
such producing company carries on trade or business in
the Sheikhdom or any agreement supplementary thereto;

credit aggregate" means in relation to oil of a producing

company the aggregate value of all royalties, other than
royalties on crude petroleum equal to one-eight of the

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(13)

(14)

(15)

(16)

(17)

(18)

. value, at the applicable, posted price in the Sheikhdom,

of crude petroleum production in the Sheikhdom and
exported therefrom, and rentals, and of all taxes (other
than the tax imposed by this Decree), duties, imposts
and other exactions of a like nature and of any payments
in lieu of any tax which accrue from or are paid by
whomsoever to the Ruler or to any State, governmental
or other public authority in the Sheikhdom (whether
central or local) in respect of the relevant income tax
year in connection with the production, transportation,
sale, shipment or export of such oil;

"the credit aggregate of oil dealt in" means so much of
the credit aggregate as accrues or is paid in respect of
the relevant income tax year in connection with the
production, transportation, sale, shipment or export of oil
dealt in: provided that if such oil dealt in has been
produced by a producing company which is not a
chargeable person so much of the credit aggregate as
aforesaid shall be reduced by an amount equal to 50% of
the income of that producing company for such income
tax year derived from such oil dealt in, such income
being calculated on of a chargeable person dealing in oil
as if such producing company were a chargeable person
dealing in oil for such income tax year.

ARTICLE 3

(19)

(1) For the due administration of the Decree and Ruler will

appoint a Director of Income Tax and such other officials
and persons as may be necessary.

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(2) The Director shall be responsible for the assessment and
collection of income tax, and shall exercise the powers
vested in him by this Decree.

(3) The Director shall pay promptly to the Ruler ail such
collected in respect of income tax.

ARTICLE 4

(1) Subject to the provisions of paragraph (2) of this Article 4
there shall be chargeable for each income tax year upon
the taxable income of every chargeable person tax at the
rates hereinafter set forth:

- Rate of tax
Taxable income per cent
Upon every Qatar Dubai Riyals of the first QDRS 1,000,000 Nil
Upon every Qatar Dubai Riyals of the next QDRS 1,000,000 10
Upon every Qatar Dubai Riyals of the next QDRS 1,000,000 20
Upon every Qatar Dubai Riyals of the next QDRS 1,000,000 30
Upon every Qatar Dubai Riyals of the next QDRS 1,000,000 40
Upon every Qatar Dubai Riyals of the remaining taxable income 50

(2) Every chargeable person deriving income from dealing in
oil shall, notwithstanding the provisions of paragraph (1) of
this Article 4, be chargeable to tax upon so much of its
taxable income for an income tax year as is so derived at
the rate of 50% of every Qatar Dubai Riyal or, where the
books and accounts are maintained in Sterling, every
pound Sterling thereof; provided that the tax so charged

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shall be reduced by the credit aggregate of oil dealt in for
that income tax year and provided also that the total of
reductions allowable to all such chargeable persons for
that income tax year shall not exceed the credit aggregate
of oil dealt in for that income tax year.

ARTICLE 5

Taxable income shall be computed as provided by this
Decree and in accordance with the method of commercial
accounting regularly employed by the chargeable person
in keeping the records and such records shall contain all
items of incomings and expenditure. If the method of
commercial accounting so employed does not fairly reflect
the chargeable person's taxable income, the computation
shall be made in accordance with such method as does
fairly reflect the same. Both the accrual method and the
cash receipts and disbursements method of commercial
accounting shall be considered fairly to reflect taxable
income.

lf taxable income is computed on the accrual method of
commercial accounting, all items of incomings, costs, and
expenses shall be taken into account for the income tax
year in which the right or liabilities thereto accrue to or
against the chargeable person, while if taxable income is
computed on the cash receipts and disbursements method
of commercial accounting all items of comings shall be
taken into account for the income tax year in which they
are received and all items of costs and expenses shall be
deducted for the income tax year in which they are paid by

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the chargeable person.

(3) A chargeable person shall be entitled to use the methods
regularly followed in. its records for converting one
currency to another if such method is generally recognised
in commercial accounting.

ARTICLE 6

(1) For the purpose of computing the taxable income of any
chargeable person for an income tax year there shall be
deducted from its income for that year, subject as
hereinafter provided, all costs and expenses wherever
incurred by such chargeable person in the production of
that income which costs and expenses shall include
(a) the cost to the chargeable person of goods sold or of

services rendered by the chargeable person in
connection with carrying on trade or business;

(b) costs and expenses incurred by the chargeable
person for the purpose of carrying on trade or
business (exclusive of any amounts deductible under
sub-paragraph (a) of this Article 6(1) of income tax
payable by virtue of this Decree and of expenditure
in respect of physical or intangible assets) including,
without in any way limiting the generality or the
foregoing administrative, overhead and
establishment expenses, contributions and
remunerations or rewards for services rendered by
others, whether they accrue or are paid directly to
the persons rendering the services or to the other
persons in respect of insurance, pension, or other

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plans established for the benefit of the persons
rendering the services.;

(c)(i) an annual allowance for each income tax year in
respect of the depreciation, obsolescence,
exhaustion or amortisation of physical assets and of
intangible assets belonging to the chargeable person
at the end of that income tax year calculated as a
reasonable percentage of the original cost to the
chargeable person of such assets and any additions
thereto. In respect of the assets specified in the
sub-joined table, the reasonable percentage shall, in
the absence of proof to the contrary, be the
percentage specified in such table.

Per cent
Banking such as offices, dwellings, stores, hospitals and clubs 4
Roads and bridges ... ... ... wee cee eee cee eee eee eee eee 4
Tanks, pipe-lines, jetties and wharves fee eee ee tee eee eee eee nee 5
Office furniture and equipment... ... 15
Plant, machinery and equipment other than that indicated below 10
Motor cars and motor cycles... ‏لل عم‎ cee ee eee eee cee ee tee eee 33
2
Lorries and trailers 2. oe ee ce cee cee cee cee ee eee nee ae 25
Marine Craft
7
Aeroplanes ... ‏الل‎ .. cee cee cee cee tee cee ten cee cee cee cee aes 25
Drilling and clean OULTOOIS ‏ا‎ cee ee ee ee eee ee 33
2
Service replacement plant {including construction and road-
making equipment, workshops and equipment, handling
equipment and sundry other) 25
Service station buildings and driveways ... ... ... . beens 10
Servicing, greasing and other service station equipment _ 3 15
Caris ... ... 3 20
Refining plants pipe- “lines (within. refinery) and small tanks vee ase 10

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10 عع عم ممم لمم ممت ممم ممم لمن ‎nee‏ ممم ‎ee cee‏ عمل مم ‎Intangible assets...‏

No amount shall be deducted under this
sub-paragraph (c) if and to the extent that the same
has been included in any amount deducted under
sub-paragraph (a) of this Article 6 (1).

(ii)

(iii) The total of the deductions allowed in any income

tax year under this sub-paragraph (c) and under
sub-paragraph (d) of this Article 6(1) in respect of
any asset shall not, when added to the total of the
deductions allowed in respect of that asset in
previous income tax years, exceed the actual cost to
the chargeable person of such asset.

Losses sustained by the chargeable person in
connection with carrying on trade or business and
not compensated for by insurance or otherwise,
including, without in any way limiting the generality of
the foregoing, bad debts, losses arising out of claims
for damages against the chargeable person, losses
resulting from damage to or destruction or loss of
stock in trade or losses arising from damage to or
destructions, abandonment, scrapping or sale of
physical assets belong to the chargeable person.
The value of any physical asset for the purpose of
computing the amount of deduction for losses shall
be the original cost of the asset to the chargeable
person decreased by the aggregate of the amounts
previously deducted pursuant to sub-paragraph (c) of
this Article 6(1). The amount of the loss shall be the
excess of the said value over any proceeds realised.
Any proceeds realised on the sale or disposition of

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that asset to the extent that they exceed the said
value and do not exceed the original cost of such
asset to the chargeable person shall be regarded as
taxable income.

(e) The amount.of any net operating loss (being the
amount by which total deductable costs, expenses,
allowances and losses for any income tax year
exceeds the income for such year) incurred by such
chargeable person in carrying on trade or business in
any previous income tax year which has not been
allowed against such chargeable person's income of
any previous income tax year.

(2) For the purpose of computing the taxable income of a
chargeable person dealing in oil
(a) Without prejudice to the. generality of the provisions
of sub-paragraph (b) of Article 6(1).

(i) There shall be included in any deductions under that
paragraph cosis and expenses of exploration for and
development of petroleum or other hydrocarbon
properties whether by drilling exploration. producing
or other wells or by any means whatsoever incurred
after the commencement of trade or business;

(ii) There shall be included in any deductions under that
paragraph royalties paid on crude petroleum dealt in
by that chargeable person equal to one-eighth of the
value at the applicable posted price in the
Sheikhdom of such crude petroleum;

(iii) there shall be excluded from any deductions under
that paragraph any sums-which are included in credit
aggregate;

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(iv) there shall be excluded from any deduction under

that paragraph any payment made to the Ruler in
satisfaction of any undertaking in any agreement with
the Ruler to make up the Ruler's share of profits on
oil produced thereunder to the total of such share
therein specified, provided that any sum or the
aggregate of any sums received by such chargeable
person of the purpose of discharging any such
payment shall not form part of the income of that
chargeable person.

Notwithstanding the provisions of sub-paragraph (c)
of Article 6(1) where any agreement with the Ruler
under which such chargeable person is carrying on
trade or business in the Sheikhdom prescribes a
basis or percentage for the calculation of such an
annual allowance as is referred to in the said
sub-paragraph (c) then unless such agreement
otherwise specifies the annual allowance, arrived at
on such basis or by reference to such percentage
shall be deemed to be the annual allowance for the
purpose of the said sub-paragraph (c).

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(c) Where such oil dealt in has been produced by a

producing, company which is not a chargeable
person, the total of the deductions allowable under
this Article to such chargeable person in any income
tax year shall be deemed to be increased by the
amount of any net operating loss of that producing
company for that income tax year calculated on the
basis set out in this Decree for compatation of the
taxable income of a chargeable person dealing in oil
as if that producing company were a chargeable

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person dealing in oil as if that producing company
were a chargeable person dealing in oil for such
income tax year; provided that the resulting increase
shall in the case of each such chargeable person
dealing in oil be limited to such part of such net
operating loss as that producing company certifies as
being attributable to the goods or rights sold to such
chargeable person in that income tax year, and
provided further that the total of all such increases so
certified by that producing company shall not exceed
its net operating loss.

ARTICLE 7

Every chargeable person shall keep its records on the basis of
the Gregorian Calendar year ending on the 31st day of
December, unless the Director, upon the chargeable person's
request, has authorised the chargeable person to keep its
records on the basis of a different annual accounting period.

ARTICLE 8

(1) On or before the last day of the third month following the
end of every income tax year every chargeable person
shall file with the Direcior at his office in Sharjah a
provisional income tax declaration for that income tax
year; provided that a chargeable person having taxable
income for any income tax year of less than QDRS
1,000,000 shall not be required to file an income tax
declaration unless directed by the Director so to do.

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Every chargeable person required to file a
declaration as aforesaid shall pay to the Director in
Pounds sterling or QDRS the amount of income tax
shown thereon in four equal installments The
installments shall be due, respectively on the last day
of the third, sixth, ninth and twelfth months following
the end of the income tax year.

On or before the last day of the ninth month following
the end of the income tax year every such
chargeable person shall file with the Director at his
office in Sharjah a final income tax declaration for the
income tax year. If the amount of the income tax
shown on the final declaration exceeds the amount
shown on the provisional declaration, the installment
due under the foregoing provisions of this paragraph
on the last day of the twelfth month following the end
of the income tax year shall be increased by the
amount of the excess and if the amount of income
tax shown on the final declaration is less than the
amount shown on the provisional declaration, the
said installment shall be reduced as far as may be by
the amount of the deficiency and any tax overpaid for
the income tax year shall be repaid by the director
within 28 days after the filing of such fina! declaration
or after the determination of any dispute as to the
amount of tax overpaid.

(a)

(b)

The Director may grant reasonable extensions of time for
filing the declaration required and paying the income tax
imposed by this Decree, when the chargeable person

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(2)

(3)

shows that such extensions are justifiable. In case of
failure to file the declaration or to pay the amount of
income tax due in accordance with the provisions of this
Article 8, except where such failure is due to reasonable
cause, there shall be added to the amount due a fine
calculated at the rate of one per centum (1 per cent) for
each thirty days or fraction thereof during which such
failure continues.

(4) The Director shall deliver to the chargeable person a
receipt for each payment of income tax certifying the
amount paid and the year or years for which the payment
was made.

ARTICLE 9

The chargeable person shall file its final declaration on the
basis of records which are kept in accordance with Article 5 of
this Decree and on a basis which fairly reflects its taxable
income. If any internationally recognised firm of accountants
approved by the Director (which approval shall not be
unreasonably withheld) certifies that the records for any
income tax year are correct and fairly reflect the chargeable
person's taxable income for that income tax year and that the
final declaration. is in confirmity with such records, such
declaration shall in the absence of evidence to the contrary be
accepted as correct for all the purposes of this Decree, and the
income tax shown by such declaration shall be taken to be
finally determined. In default of the certification for which
provision is made in this Article 9, the Director may accept the
chargeable person's final declaration as correct, or may decide

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that it is necessary to adjust the amount of income tax stated in
such declaration. In no event shall the amount stated in the
final declaration be increased unless the chargeable person so
agrees or unless and to the extent that any award or
abjudication under Article 13 so requires.

ARTICLE 10

(1) Declarations shall be confidential and shall not be opened
to examination or inspection by any person other than the
Director and personnel of the Director. It shall be unlawful
for them to divulge or make known in any manner
whatsoever to any person or persons other than
themselves the amount in any declaration or in any
chargeable person's records and books, or to permit any
declaration or copy thereof or any record or book
containing any abstract or any particulars thereof to be
seen or examined by any person or persons other than
themselves.

(2) Any offence against the provisions of paragraph (1) of this
Article 10 shall be punishable by a fine not exceeding
QDRS 1,500.

ARTICLE 11

Every chargeable person's relevant records and books shall
upon request of the Director be made available for inspection
by the Director and the personnel of the Director when
necessary for the purpose of carrying out the provisions of this
Decree.

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ARTICLE 12

Any person who knowingly (a) falsifies any chargeable
person's records or (b) makes any false statement affecting
any declaration or certificate required for the purposes of this
Decree shall be guilty of an offence against this Decree and on
conviction shall be liable to imprisonment for a period not
exceeding two years or to a fine not exceeding QDRS 10,000
or to both such imprisonment and fine. If the records of any
chargeable person have been so falsified or if any false
statement has been so made affecting the declaration or
certificate of such chargeable person by any person for whose
conduct such chargeable person is locally responsible, then
such chargeable person shall be guilty of an offence against
this Decree and on conviction shall be liable to a fine not
exceeding QDRS 50,000.

ARTICLE 13

(1) Subject to paragraph (2) of this Article 13 any dispute
between the Director and a chargeable person as to any
matter arising out of the provisions of this Decree may be
referred by either party to the Courts for adjudication unless
the Director and the chargeable person have agreed to submit
the dispute to arbitration in which case it shall be resolved in
accordance with the manner agreed.

(2) Any dispute as to any matter arising out of the provisions
of this Decree between the Director and any chargeable

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person dealing in ‏:أله‎ produced pursuant to any agreement
between the Ruler and a producing company shall be resolved
in the manner provided in such an agreement.

Promulgated by this day the Seventh day of September 1968,
corresponding to the Fourteenth day of Jamadia Al-Thani 1388
in Sharjah.

SHAIKH KHALID BIN MUHAMMAD AL QASSIMI
Ruler of Sharjah and its Dependencies.

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