The National Shipping Company of Saudi Arabia
70/71
Provision for zakat and tax
Following is the movement in provision for zakat and tax during the year ended December 31:
2011
2010
Balance, beginning of the year
129,429
118,639
Amounts paid during the year
(51,272)
(26,986)
Income tax refund related to a subsidiary
922
1,411
Provisions for the year:
Zakat
21,594
35,104
Tax:
• Withholding tax
3,904
2,137
• Income tax (benefit) related to a subsidiary
(1)
(876)
Balance, end of the year
104,576
129,429
17. HEDGING RESERVE FOR LOANS COMMISSION
the market value of the commission rate swaps are recorded in the hedging reserve which is included in the shareholders’ equity.
The Company uses the commission rates swaps and caps to avoid fluctuations in commission rates on the long-term loans. The change in
18. STATUTORY RESERVE
50% of the paid-up capital. This reserve is not currently available for distribution to shareholders.
In accordance with Saudi Arabian Regulations for Companies, the Company is required to transfer 10% of the net income to the statutory reserve until such reserve equals
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