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Non-profit Organizations and Companies Fully Owned by Them. The Companies Law issued by Royal Decree No. (M/132) dated 1/12/1443 H classified non-profit companies into public non-profit companies and private non-profit companies as follows: Public Non-Profit Company: A company that takes the form of a joint-stock company and cannot take any other form. It spends the profits generated from its activities on any of the public non-profit disbursements or fields aimed solely at serving society as a whole. The Ministry, in coordination with the National Center for Non-Profit Sector Development, shall determine such disbursements and fields. Private Non-Profit Company: A company that takes the form of a limited liability company, a joint-stock company, or a simplified joint-stock company, and cannot take any other form. It spends the profits generated from its activities on any non-profit disbursements or fields. Example (41) Non-profit companies and their wholly-owned companies, established in accordance with the provisions of the Companies Law, its executive regulations, and any amendments thereto, are exempt from zakat collection, taking into consideration the following: a. Disbursements of the non-profit company and its fields - stipulated in its Bylaws and Article of Association- shall only include disbursements and fields allocated to the public non-profit companies. b. Disbursements to specific persons must not exceed (10%) of the company’s revenues, including the benefits of company owners or Board members, or their bonuses and/or salaries, for the services and works provided thereby to the company. c. The evidence in determining all company’s disbursements - including Sub-paragraph (B) herein - shall be through the audited financial statements of the company, a report from a certified chartered accountant in the Kingdom, or any other documents accepted by the Authority. According to the Companies Law and its Executive Regulations,this treatment is considered an exemption from the requirement for non-profit companies to pay Zakat. Article 196 states: "As an exemption from related regulations, the Zakat, Tax, and Customs Authority, in coordination with the Ministry, shall establish the necessary controls to exempt non-profit companies from Zakat collection provisions and from taxes." Exemption conditions for Non-profit organizations and Companies Fully Owned by Them Disbursements of the non- profit organization and its fields - stipulated in its Bylaws and