Contents
1. Authority's Method of Calculating the Zakat Base
2. Methods of Zakat Calculation for Companies (Example)
3. Zakat Base Rules
The Zakat, Tax and Customs Authority ('ZATCA', 'Authority') has issued this Guide for the purpose of clarifying certain tax treatments concerning the implementation of the statutory provisions in force as of the Guide's issue date. The content of this Guide shall not be considered as an amendment to any of the provisions of the Laws and Regulations applicable in the Kingdom.
Furthermore, the Authority would like to highlight that the clarifications and indicative tax treatments prescribed in this Guide, where applicable, shall be implemented by the Authority in light of the relevant statutory texts. Where any clarification, interpretation or content provided in this Guide is modified - in relation to unchanged statutory text - the updated indicative tax treatment shall then be applicable prospectively, in respect of transactions made after the publication date of the updated version of the Guide on the Authority's website.
Real Estate Activities | : | real estate activities sector includes the activity of property lessors, real estate agents and/or real estate brokers, buying and selling real estates, properties leasing and Providing other services related to real estate such as assessing the value of the property or acting as agents of the execution contract in the purchase of real estate properties. |
The real estate activities sector includes:
Buying and selling real estates
Properties leasing
Providing other services related to real estate such as assessing the value of the property or acting as agents of the execution contract in the purchase of real estate properties.
The Authority's Method of Calculating the Zakat Base for Zakat Payer Who Holds Commercial Books
The Authority uses the indirect method (the method of sources of funds) to reach the container, and builds this method on the following:
(Additions): add the internal sources of the Zakat payer's funds and the part of his external sources of funds utilized in financing.
(Deductions): Non-Zakatable and Zakatable assets are deducted from Zakat base.
Additions:
Capital
Advanced revenue and payments.
long-term liabilities
Reserves during the year.
Retained earnings
Profit under distribution
Adjusted net profit
provisions at the beginning of the year
The change in the fair value calculated
Offsetting item of the deductible assets
Deductibles: