Contents
1. Introduction
1.1. About Zakat
1.2. Levying of Zakat
1.3. Application of Zakat Levying in Saudi Arabia
1.4. Zakat, Tax and Customs Authority
1.5. ZATCA's Tasks
1.6. Overview of this Guide
2. Zakat Concepts, Terminology and Calculation methods
3. Identify Zakat base for financing activities
3.1. Zakat payers subject to the Rules for Calculation of Zakat for Financing Activities
3.2. Zakat base for financing activities
3.2.1. Concepts relating to Zakat base for financing activities
3.2.2. Sources of Funds Subject to Zakat
3.2.3. Sources of Funds not Subject to Zakat
3.2.4. Practical examples of sources of funds subject and not subject to Zakat
3.2.5. Non-Zakatable Assets
3.2.6. Zakatable assets
3.2.7. Rules for Calculating Zakat Base for Financing Activities
3.2.8. Practical examples
3.3. The upper and lower limits of the Zakat base
3.3.1. In the event Zakat payer realizes a net profit
3.3.2. In the event Zakat payer does not make a net profit
3.3.3. Practical examples
3.4. Zakat declaration for financing activities
3.4.1. How to prepare and file the declaration
3.4.2. How to settle the amounts due under the declaration
4. Zakat treatment of certain items of the statement of financial position in accordance with the Rules for Calculation of Zakat for Financing Activities
5. Appendix: Frequently Asked Questions (FAQ)
This guideline was issued by the Zakat, Tax and Customs Authority («ZATCA» or «Authority») to elucidate certain treatments regarding the implementation of the statutory provisions in effect as of the date of publication of this guideline. The content of this guideline may not be construed as an amendment to any of the laws and regulations applicable in the Kingdom.
Additionally, it should be noted that the indicative treatments outlined in this guideline will be carried out by the Authority in accordance with the applicable regulations. Where any clarification, explanation, or information given in this guideline is modified but the regulation remains the same, the updated indicative treatment shall then be applicable prospectively to transactions completed after the publication date of the guideline on the Authority's website.