The Minister of Finance issue a decision No. (1007) entailing approval of issuing the Implementing Regulations for Zakat Collection (V. 1445H), which illustrate all treatments related to Zakat collection, and facilitate the collection procedures within all business sectors, in a way that contributes to raising Zakat payers' voluntary commitment.
The new Implementing Regulations included 128 articles, that provide detailed clarifications of many articles, to include more details that raise awareness about Zakat procedures, and to address the challenges facing Zakat payers.
Moreover, the regulations included all the rules related to zakat collection, issued by ministerial resolutions separate from the regulations, which include the rules for calculating the zakat on deemed basis, the rules for calculating the zakat on financing activities, the rules for calculating the Zakat from investors in investment funds, the rules of ineligibility of endowment-owned zakat payer for zakat collection, and the rules of ineligibility of non-governmental associations, institutions, and training unites for zakat collection.
The new regulations earmarked sectors with separate chapter-specific zakat treatments, taking into account the different business activities, such as insurance, finance and other sectors. Furthermore, the regulations included a separate section addressing the rights of the Zakat payers, such as the Zakat payer right to determine the launch of the business, amend the zakat returns, etc.
The new Implementing Regulations sets out the form for reporting the Zakat payer of the Zakat assessment, which includes the basis for calculating the zakat assessment, the amount of the zakat dues, the due date of zakat dues, and the Zakat payer's right to object to the Zakat assessment.
One of the most notable amendments to the Implementing Regulations for Zakat Collection is the development of the Minimum and the maximum values of Zakat base, so as to preserve the right of Zakat payers of the increased zakat costs and clarify the treatments of the Government's outstanding dues, legal deposits, the zakat effect of treasury stock and the cases of Zakat payer inability to calculate investment zakat outside the Kingdom. The new amendments also included the addition of specific controls on the ZATCA's request for documents from the Zakat payers and the provision of the request for amendment of the zakat returns.
The decision clarifies that the regulations shall be effective starting from the financial years beginning on 1 January 2024 and beyond, as its return's submission shall be during 2025G, in accordance with the specified conditions and controls.
ZATCA invited Zakat payers and interested persons to review the new Implementing Regulations for Zakat Collection available on its website (zatca.gov.sa). Moreover, ZATCA allows business sector Zakat payer wishing to obtain further information to communicate with it through the call center unified No. (19993), operating 24/7, or "Ask Zakat, Tax and Customs" account on (X) platform (@Zatca_Care), or through email (info@zatca.gov.sa), or by instant chat on ZATCA's website.
The issuance of the new Implementing Regulations for Zakat Collection is part of ZATCA's endeavor to enhance the efficiency of zakat and tax laws, contribute to raising compliance and commitment, achieving financial sustainability and supporting the national economy, as well as its ongoing endeavor to raise the of awareness of all Zakat payers and customers on zakat, tax, and customs, provide them with the best possible experience and ensure ease of doing business and facilitating procedures.
