Depreciation
الإهلاك
📖 Definition
Depreciation is the systematic allocation of a fixed asset's cost over its useful life. Saudi tax law allows specific depreciation rates for different asset categories. Common methods: Straight-line and Declining balance.
In everyday Saudi accounting work, depreciation matters because it affects invoice accuracy, financial reporting, tax filing, or ZATCA compliance depending on the transaction.
📖 التعريف بالعربية
الإهلاك هو التوزيع المنتظم لتكلفة الأصل الثابت على عمره الإنتاجي. يسمح قانون الضرائب السعودي بمعدلات إهلاك محددة لفئات الأصول المختلفة. الطرق الشائعة: القسط الثابت والقسط المتناقص.
💡 Example
A SAR 50,000 vehicle with 5-year life depreciates SAR 10,000 annually using straight-line method.
سيارة بقيمة 50,000 ريال بعمر 5 سنوات تُهلك 10,000 ريال سنوياً بطريقة القسط الثابت.
When this term matters
Invoices
Use the correct term and value before issuing ZATCA-compliant invoices or credit notes.
Reports
Map it to the right account, tax field, or compliance report to avoid reconciliation gaps.
Compliance
Keep the Arabic and English meaning aligned when working with auditors, ZATCA, or customers.
Automate Depreciation with Qeemah
Qeemah accounting software handles depreciation automatically, ensuring ZATCA compliance and reducing manual work.