FAQs

Sign in Sign up
Zatca Mobile Apps
settings

Change Font Size

Grayscale mode

Voice Commands
عربي
Search

Listen

FAQs

Main Sections

When do I become obligated to pay Zakat?

Zakat is levied on every Saudi or GCC state’s establishment that suffices the Kingdom’s residency requirements and conditions. It is also levied on the shares of Saudi partners in mixed companies.

When are Zakat levied upon establishments?

Non-Saudi establishments: Income tax is levied.

Saudi or GCC establishments: Zakat is levied (if residency conditions are satisfied by GCC establishments).

Mixed establishments: Zakat is levied upon the Saudis’ share of the capital. Income tax is levied upon the non-Saudi share of net profit.

What are the entities benefiting from the collected Zakat?

Beneficiaries of Social Insurance.

What are zakat-related obligations that required to be sufficed by non-profit entities and charities?

Zakat is not levied on such entities if the following obligations are met:

The funds are not owned by a particular person.
The revenues are allocated for general charitable purposes.
The charity is licensed by accountable authorities, and its objectives are identified.

If a company pays Zakat to an official charity through verified zakat accounts, will it be satisfactory and approved by ZATCA?

ZATCA is responsible for collecting Zakat from all establishments subject to Zakat Law. It deposits the collected Zakat in the Saudi Arabian Monetary Agency's account allocated for the Ministry of Social Affairs.

How is the Zakat amount calculated?

The zakat payable amount is identified according to the filed Zakat Returns. Then, the establishment's due Zakat is estimated according to its filed returns. Zakat due amount equals (2.5%) of the Zakat Base. Zakat Base represents the total sources of funding, excluding fixed assets and the like. Finally, ZATCA calculates Zakat Base in according to the following formula:

Zakat Base + total sources of funding – fixed assets and the like.

What are the followed procedures of paying due Zakat after the issuance of an invoice number?

All due payment can be paid to Zakat, Tax and Customs Authority through SADAD payment system via code no. (020).

Is it permissible to delay the payment of due Zakat?

It is not permissible to delay the payment of due Zakat.

What is the procedure of reporting Zakat evasion?

Any Zakat evasion can be reported by contacting the following channels, noting that such reports are handled with high confidentiality:

ZATCA’s website: WWW.ZATCA.GOV.SA

Email: Taxevasion@ZATCA.gov.sa

Call Center: 19993

X Account: @ZATCA_care

What are the expenses allowed to be deducted from the zakat base?

All ordinary and necessary expenses required for the activity, whether they were already paid or still payable in order to reach the net result of the activity, are deductible as per to the following requirements:

It should be an actual expenditure substantiated by supporting documents or other proofs that allow ZATCA to confirm them even if it is linked to previous years.
It should be relevant to business activity, not to personal expenses or other pursuits.
It should not be of capital nature. If capital expenses are involved within the expenses, the result of the business activity will be amended and the capital expenditure will be added to the fixed assets and addressed according to the regular percentages.

Can an establishment deduct the employee's share in regular pension funds such as pension fund, social insurance or and saving funds?

The establishment is not permitted to deduct the employee’s share in such funds from Zakat Base.