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 GAZT: As of 2020, the amendments regarding zakat collection regulation for commercial enterprises will be implemented

GAZT has stated that the amendments regarding zakat collection regulation for commercial enterprises will be implemented as of January 1, 2020. The new amendments will facilitate the procedures of collecting Zakat. It will also give more clarity regarding component items of zakat base for all commercial activities, including insurance activity. The amendments to the zakat collection regulations come after the issuance of order No. (2216) dating to 7/7/1440 AH. The regulation will be applied to Saudi commercial entities and the Gulf commercial entities operating in the Kingdom.

The rules for calculating financing activities zakat contribute to determining the items of the zakat base for banks and finance companies that are licensed by the Saudi Arabian Monetary Authority, which will raise the level of commitment and reduce any conflict that may arise between the Authority and the taxpayers regarding the calculation of zakat.

GAZT intends to apply rules regarding zakat calculation of estimate taxpayers aiming at easing the process of zakat declarations for estimate taxpayers as they represent the majority of taxpayers. Those taxpayers are not required to submit their zakat declaration anymore as GAZT made the process of submitting declarations more automatic that in the end the taxpayer receive zakat bill and he is provided the ability to amend it.

It is worth noting that GAZT has issued a number of guides through GAZT.GOV.SA website. These guides disclose GAZT method of calculating zakat for various commercial activities that are subject to zakat.

GAZT also organized a number of workshops in various regions of the Kingdom, aiming at informing the taxpayers and accountants about the new amendments regarding zakat calculation as a result of the new amendments on tax collection regulation.

08 December 2019
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Last Update: 18 Dec 2019 01:33 AM Saudi Arabia Time