1Issue 1 | September 2024

Non-Zakatable Assets According to the Regulations, non-zakatable assets include: Group Item Amount Non- Zakat Assets Net fixed assets and their equivalents, according to the Regulations. Real estate transferred to the financing activities Zakat payer by virtue of foreclosure on a mortgage. Investment in establishments or ownership shares subject to Zakat within the Kingdom, taking into account Section 4, Chapter 5, Part 2 of the Regulations. Investment in direct and indirect financing funds registered with ZATCA according to the Regulations. Investment in investment funds within the Kingdom, according to the Regulations. Investments in establishments or ownership shares outside the Kingdom, provided the Zakat payer pays its Zakat independently, taking into account Section 4, Chapter 5, Part 2 of the Regulations. Debts due to the Zakat payer where the maturity date or part thereof is after one year or more, whether called short-term or long-term debts, as follows: a. All types of provided financing (loans, Murabaha/cost-plus financing, finance lease, etc.). b. Zakat payer investments in debt instruments (Sukuk, bonds), regardless of structure. Zakat payer investments in government debt instruments where the State bears the Zakat, as per the Minister of Finance Resolution No. (2218) dated 7th Rajab 1440H/14th March 2019G and its amendments regarding the rules for the State bearing Zakat and income tax arising from investment in sukuk and bonds issued by the Ministry of Finance in Saudi Riyals. Positive fair value of financial derivatives due after one year or more, including derivatives held in the form of call and put options, swap contracts, and financial instruments acquired for hedging purposes. Statutory deposit with the Saudi Central Bank. 3.2.6 Zakat Assets Zakatable assets, according to the rules of the Regulations for calculating Zakat on financing activities, are determined by deducting non-Zakatable assets from total assets. The following table provides examples of Zakatable asset items: Group Item Amount Zakat Assets Cash and cash equivalents Inventory Debts due to the Zakat payer maturing in less than one year Investments in companies based outside the Kingdom, for which Zakat has not been paid Intangible assets purchased with the intent of trading Investment in deposits or forward transactions Statutory deposits other than those with the Saudi Central Bank Financial assets held for trading purposes