01

Adoption of the end-of-period balances. The Zakat base is calculated by adding addition and deduction items based on the balances of these items as shown in the statement of financial position at the end of the Zakat year. The Regulation has adopted the treatment of all items based on the end-of-period balances, as stipulated in Article 17 of the Regulation. When calculating the Zakat base and determining the value of addition and deduction items, the Zakat payer shall refer to the financial statements at the end of the Zakat year, disregarding any increases or decreases in the item during the Zakat year. Only the End-of-Year balance shall be considered. For example, in cases where there is an increase in capital during the year, the Zakat payer must rely on the capital as of the end-of-period balance. Similarly, in cases where the Zakat payer obtains bank loans during the year, the Zakat payer must rely on the loan item as of the end-of- period balance. This is regardless of the following: The date of addition. The nature of the addition. The reason for the addition. These considerations do not affect what should be relied upon when adding the item to the zakat base, which is the end-of-period balance. This rule applies to all addition items, such as equity and its equivalents, and liabilities added to the base, and all deduction items, such as fixed assets and investments deducted from the Zakat base. The following movement was recorded on some items of the statement of financial position of a company during the year 2024: How are the amounts to be added to the Zakat base determined? The solution: Items are added to the Zakat base based on their ending balance as follows:olution: Addition Items Retained Earnings SAR 11,000 Long-term Loans SAR 23,000 Item Beginning Balance Debit Credit Year-End Balance Retained Earnings SAR 10,000 SAR 2,000 SAR 3,000 SAR 11,000 Long-term Loans SAR 20,000 SAR 6,000 SAR 9,000 SAR 23,000 Example (8)