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Website Last updated:
June 26, 2026
1. Introduction
2. Application of Zakat Levying in Saudi Arabia
3. Main Concepts of Zakat Levying Regulation
4. Registration for Zakat Purposes
5. Authority's Method to Calculate Zakat Base
6. Zakat Base Rules
7. Adjustment to the Result of Business
8. Objection and Appeal Procedures
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.
Zakat is the third pillar of Islam and the most important financial worship. As an indication of the great status of Zakat in Islam, the state is entrusted with administering and supervising the collection of Zakat on declared funds and its distribution to the needy.
It is stipulated in the Basic Law of Governance, as stated in Article (21): (Zakat shall be collected and spent as prescribed by the Islamic Shari'ah).
The Royal Decree No. (17/2/28 /8634) dated 29/6/1370H (corresponding to 6 April 1951) was issued during the reign of the founder King Abdul Aziz (may God rest his soul), which included the order for the levying of Zakat.
This was emphasized in many subsequent royal decrees, ministerial decisions, and Zakat regulations and circulars, including:
Royal Decree No. (M/40) dated 2/7/1405H, included the order to collect Zakat in full from all companies, institutions and others and individuals who are subject to Zakat.
Implementing Regulation for levy of Zakat was issued under Ministerial Resolution No. (2082) dated 1/6/1438H.
Implementing Regulation for levy of Zakat was issued under Ministerial Resolution No. (2216) dated 7/7/1440H, effective 1 January 2019G.