Progress report
Manal alsabti
200801150
Institution:
PriceWaterhouse Copper (PwC)
Instructor:
Munner Abbad
Summer internship 2012
My objection
To apply what I have learned, and to know what type of concepts I will
apply so that I focus more on them when I return to PMU.
To try the working field as a change from being a student, and to try my
performance before I’m committed to a job.
To learn more about how the accounting companies work and provide
service.
There’s a phrase that I see every day in PriceWaterhouse wall.
“Value is in the passion you have for what you do every day” it just
make me want to work and learn as much as I can and feel they joy in this
journey.
Reflection of what I did in the first month I worked in PriceWaterhouse
cooper, and what I learned and applied during this period.
Background about the company
Pricewaterhouse cooper, PWC is a company that provide service such as audit
and assurance, Tax, consulting, family business service for other companies in all
sectors to help them with complex financial accounting issues related to matters
such as valuations, pensions and share plans, listings. They apply their business
within the framework of applicable professional standards, laws, regulations and
internal policies that meet the region they do business. In Saudi Arabia they follow
GAAP, IFRS tax accounting and reporting,( Dean Kern, n.d) and apply DZIT
requirement for paying Zakat, preparing financial statement and doing business.
Which I have observed during preforming my tasks in Tax department.
 Although I was assigned in my contract Assurance department, they
didn’t have much work to give me because it’s a dead season for
auditing, so I worked mostly in Tax/Zakat department they have
pressure and work all the year so I helped them and learned from them.
PWC Marketing strategy
PWC have the fastest-growing tax practice in the Middle East it is well known
to the client since it’s the firm to establish a specialist tax practice in the Middle
East which develop a market leading reputation. Some employees post their view
about the company in public website in the purpose of advertising or giving
feedback to whomever request. PWC attracts clients by partners soliciting for
business or through referrals.
Professional periodicals
PwC publish their professional periodicals, in their website and also send some
articles and reports to our PwC email, these periodicals include recent issued
facing audit, growth and capital market and how to overcome them, and overview
about international public sector accounting system, Numbers of CEO in PWC
have given their views about global economy crisis in USA and Europe and Saudi
top stories of the week that we receive weekly by email, these articles present facts
and news about new projects in oil, medical, construction, and oil production and
budgeting of these projects.
These reports give an overview about important economic recent news that are
related to PWC industry and are important for employees to read about. but didn’t
give me any help preforming my task. I relay on what I have learned in PMU
accounting courses, and what the manager teach me, and the samples available in
the companies server that I have access to from other clients.
They also gave me a manual book of new income Tax regulation:
implementation guideline, some of the topics that I have applied or see through
preforming my tasks (general provision, source of income, income exempt from
tax, gain or losses arising from the disposal of assets, losses carried forward) so I
refer to these regulation to understand more about the task I’m performing, such as
Tax/ Zakat return report, DZIT assessment report analysis, withholding tax. That
is very useful, and well organized and applicable for all type of business practice
in the kingdom
Some of the tasks I have performed in the Tax department
I cannot show any sample of my task, because they are all highly confidential
information about the client that the company emphasize on and teach it to every
employee from the online courses and video I have watched before I have before I
get my laptop, it was about security and how important it is to keep our entire
document secure and not to trust anyone with them even co- worker from other
department.
But mainly in PWC the programs we use are only Excel, Lotus Note as shown
below which is an email program that have chat and push notification. And I
Power which is a time sheet that is required by every employee to register the
name of the client and time spend on working on their report or procedure, to
charge the client and for the company to know how many hours the employee
works a day and how many client he worked for and which client.
Lotus Note, Same Time chat.

Translation of Tax/ Zakat return report
Which is import the value lists from the Customs Authority in order to confirm
the value of goods imported and declared by taxpayers in their annual declarations
during the financial period, it requires details supporting all expenses be provided
by the Zakat / Tax payers. It also requires to provide all expense and revenue to
compute tax basis. The mission for DZIT (Department of Zakat Income Tax) is
to administer and collect zakat on commercial goods from Saudi individuals, also
from non-Saudi individual doing business in the Kingdom from permanent
establishment or deriving income from a source in the Kingdom.
(Brief Information on DZIT, n.d.)
PwC have to provide an Arabic version of the Tax/ Zakat return for 100% Saudi
of GCC owned entities. Also DZIT required an Arabic version for mix companies
and GCC shareholder, and submit it along with the English version. (KPMJ Saudi
tax and Zakat newsletter 2012 n.d).
this is a sample of Zakat return
And these are the rules and requirement:
I struggled in understanding the regulation of Saudi Arabia, DZIT in applying Tax
Zakat, because it’s different than what I have learned in PMU they teach us
American regulation.

DZIT update form
Its purpose is to administer and collect Zakat on commercial goods, and compute
Zakat due amount from net income. I full up 5 required forms for two companies
from a documents provided by the client (their government ID, company and
subsidiary registration, retail license)
This is the company registration form:
It was confusing and challenging because the terms in the company registration
was different than the forms and there was the date of practice and the date of
registration I got confused where to put the dates, and there was many outstanding
financial information so I had to wait until they get them from the client.

Withholding tax (WHT)
ALL Saudi companies and persons: male, female, adults, minors or legally
incompetent, are subject to zakat after completion of one year under the provisions
of Islamic Jurisprudence.
Tax rate:
The first 100,000 --- 25 percent
The next 400,000 --- 20 percent
The next 500,000 --- 25 percent
Above one million --- 30 percent
I prepared a form for a company; WHT is the income taxes the employee must pay
during the year. It is made to withhold from a nonresident individual that are
making a profit business paid directly to DZIT. The form I did was under
(Royalties or proceeds; payments for services to a head-office or related company)
which is 15% Tax.
(DZIT, withholding tax, n.d)
Withheld amount from gross amount paid shall be as follows:
Type of payment
- Management fees
- Royalties or proceeds; payments for services to a head-office or related
company
- Payments for rent; payments for technical and consulting services; payments
for air tickets, air freight and maritime freight; payments for international
telecommunications services; dividends; loan charges; insurance or reinsurance
premiums
- Other payments
Rate
20%
15%
5%
15%
(Tax on Non-residents, n.d)
So we collect the receipt withhold from their income from activity’s practice in
the kingdom to DZIT and convert it to SR, and multiply it with the rate set for
every practice.
This payment is due in first 10 days of the month.

DZIT assessment appeal
Zakat payers have the right to object on DZIT assessment, and also the DZIT, and
taxpayer may object the First Instance Committee’s resolutions to the Higher
Appeal Committee,
I reviewed an DZIT assessment for 2006, 2007 to figure out why there was a
different between DZIT computation and PwC computation by reading the
objection reply by DZIT to PWC that explain why and how they computed their
Zakat, then I review their Zakat/Tax return report to find the error. It was
confusing but after 3 hours I figured out the error, they didn’t deduct some of the
items that are noncurrent liability.
Then I wrote a letter to DZIT explaining the error they made and I did a
schedule to present the saving the company will have after the final assessment.
I learned how to act professional and what are the important concepts that I must
learn for work, this month was full of new experience and meeting new people
which made a huge change in my life and carrier.
References
Kern, D. (n.d.). Middle East Region : Tax services. PwC: Audit and assurance,
consulting and tax services. Retrieved July 1, 2012, from
http://www.pwc.com/m1/en/tax/index.jhtml
Department of Zakat and Income Tax - Saudi Arabia - General Information - Brief
Information on DZIT . (n.d.). from http://www.dzit.gov.sa/en/GeneralInfo
Withholding Tax . (n.d.). Department of Zakat and Income Tax - Saudi Arabia Frequently Asked Questions - New Income Taz Law. Retrieved July 3, 2012, from
http://www.dzit.gov.sa/en/FAQ/faqnew-3.shtml
Department of Zakat and Income Tax - Saudi Arabia - The New Income Tax Law
- Tax on Non-Residents: Withholding Tax. (n.d.). DZIT. Retrieved July 6, 2012,
from
http://www.dzit.gov.sa/en/NewIncomeTaxLaw/NewIncomeTaxLaw4_3.shtml
KPMJ Saudi tax and Zakat newsletter 2012 (n.d). Retrieved july 6, 2012 from
http://www.kpmg.com/Global/en/IssuesAndInsights/ArticlesPublications/taxnewsf
lash/Documents/saudi-march30-2012.pdf