Bahri Annual Report-2012

Chapter III Financial Information and Operation Results

Regulatory payments:

Zakat and taxes

the said assessments. In April 2010, the Company had a final settlement with the DZIT for those years, which amounted to SAR 53 million. The Company paid SAR 26 million in 2011, while the remaining amounts are to be paid in installments over five years starting in July 2012. The Company believes that it has made sufficient provisions as at December 31, 2012 for any zakat or tax claims from DZIT for these periods. The zakat returns of the Company and the National Chemical Carrier Co. Ltd. are prepared on the basis of the wealth upon which Zakat is due for each company. Bahri Dry Bulk was registered with the Zakat and Income Tax Department after having met all requirements and obtained a designated Zakat number. The affiliated company is currently preparing Zakat returns to be submitted to the DZIT. The affiliated company believes that it has made sufficient provisions for any zakat claims requested by the DZIT as at December 31, 2012 and that there are no tax obligations at that date.

The Company and its subsidiaries regularly prepare zakat and tax returns. Zakat and tax payments are settled according to the returns in a timely manner within the stated regulatory deadlines. The Company will also repay all withholding tax returns imposed on payments to non-resident foreign parties on a periodic basis according to the law. The Company provided tax and zakat return reports for all years until 2011, as well as withholding tax returns until November 2012, and paid all zakat dues and withholding returns according to these reports. The Company also received additional zakat and withholding tax assessments for the years 2001 until 2007, which amounted to SAR 22 million. However, the Company made an objection to the Department of Zakat and Income Tax (DZIT) regarding the treatment of the items of these assessments and the Company has not received final Zakat assessments from DZIT for the years 2008 until 2011. Since the implementation of the new tax regulation, the Company has paid all the withholding tax deductions on payments to non-resident foreign parties in a timely manner. The Company also believes that it has made sufficient provisions as on December 31, 2012 for any Zakat or tax claims from DZIT for these periods. The National Chemical Carrier Co. Ltd. has provided all Zakat returns for all years until 2011 and also submitted withholding tax returns until November 2012 and paid all Zakat and tax due amounts, according to the said assessments. The Company has also received additional assessments of Zakat and tax cuts for 1991 to 2004, amounting to SAR 59 million. However, the Company objected to the treatment of some of the items of

Statement of Accrued Regulatory Payments as of December 31 st , 2012

The National Ship- ping Co. of Saudi Arabia (Bahri)

The National Chem- ical Carriers Co. Ltd. (NCC)

Description

Bahri Dry Bulk (BDB)

Provision of Zakat Company Wise

15,645,166

14,444,881

6,471,959

Tax Provision for December 2012

112,976

194,665

-

Social Insurance Provision for December 2012

-

714,771

39,419

56

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