Contents
1. Introduction to the Most Common Disputed Zakatable Items Guideline
2. The Estimated Assessment for Not Submitting the Declaration Within the Due Date
3. Fixed Assets Not Used in the Business
4. Profits Under Distribution
5. Real Estate Under Development
6. The Difference in Revenue Between the Financial Statements, VAT Returns, and Real Estate Transactions
7. Debited Loans or Backstop or Additional Financing and Equivalents that Granted to the Investee Establishment
8. Charitable Endowment Companies and Non-Profit Organizations to be Subject to the Levy of Zakat
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.
Introduction to the Most Common Disputed Zakatable Items Guideline
This guideline contains the most common zakatable items in dispute and objection between zakat payers and ZATCA, where the Authority has studied and analyzed the most common of these items and published them in the 'Guideline to the Most Common Disputed Zakatable Items' (available at this link: (zakat.pdf (zatca.gov.sa) in an effort to raise awareness regarding zakat accounting.
Zakatable Items that Will be Discussed in this Guideline:
Estimated assessment for not submitting the declaration within the due date.
Investments.
Fixed assets not used in the business.
Profits under distribution.
Real estate under development.
Revenue difference between financial statements, VAT returns and real estate transactions.
Debited loans or backstop or additional financing and equivalents that granted to the investee establishment.
Charitable endowment companies and non-profit organizations to be subject to the levy of zakat.