1Issue 1 | September 2024

Method of Paying Due Amounts under the Return Upon submission of the Zakat return, the “ERAD” system issues an immediate electronic invoice notice including the payment number and the total Zakat amount due under the return. The Zakat payer must pay the due Zakat via bank transfer through the electronic “SADAD” system, provided that payment is made before the expiry of the statutory period (120 days from the end of the fiscal year). 4. Zakat Treatment for Some Statement of Financial Position Items under the Zakat Calculation Rules for Financing Activities Item Zakat Treatment under the Regulations Rules Assets Cash in hand and its equivalents Zakat assets Cash with correspondents and ATMs, if maturity is more than one year Non-Zakat assets Statutory deposit with the Saudi Central Bank Non-Zakat assets Accounts with correspondents (NOSTRO) Zakat assets Current accounts Zakat assets Money market deposits with the Saudi Central Bank Zakat assets Term deposits maturing after one year or more Non-Zakat assets Term deposits maturing in less than one year Zakat assets Demand deposits Zakat assets Savings deposits maturing after one year or more Non-Zakat assets Savings deposits maturing in less than one year Zakat assets Positive fair value of derivatives due after one year or more Non-Zakat assets Positive fair value of derivatives due in less than one year Zakat assets Investments at fair value through other comprehensive income (FVOCI) meeting the conditions in the Regulations and the Guideline Non-Zakat assets Investments at fair value through profit or loss (FVTPL) meeting the conditions in the Regulations and the Guideline Non-Zakat assets Investments at amortized cost meeting the conditions in the Regulations and the Guideline Non-Zakat assets Investments in government Sukuk issued by the Ministry of Finance locally in SAR, meeting the conditions in the rules and the Ministerial Resolution Non-Zakat assets Investments in Sukuk, bonds, and treasury bills maturing after one year Non-Zakat assets Investments in subsidiary companies Non-Zakat assets, provided they are subject to Zakat collection rules under the Regulations Investments in associate companies Non-Zakat assets, provided they are subject to Zakat collection rules under the Regulations Investments in joint ventures Non-Zakat assets, provided they are subject to Zakat collection rules under the Regulations Investments in investment funds Non-Zakat assets, provided that their Zakat is calculated and paid to the Authority in accordance with the conditions of the Regulations. Net investment in finance lease maturing after one year or more Non-Zakat assets Net investment in finance lease maturing in less than one year Zakat assets Net investment in Murabaha financing maturing after one year or more Non-Zakat assets Net investment in Murabaha financing maturing in less than one year Zakat assets Loans and advances maturing after one year or more Non-Zakat assets Loans and advances maturing in less than one year Zakat assets Financing - net (trading finance, installment sales, Murabaha/cost-plus financing, credit cards) maturing after one year or more Non-Zakat assets Financing - net (trading finance, installment sales, Murabaha/cost-plus financing, credit cards) maturing in less than one year Zakat assets Debtors of Islamic financing, maturing after one year or more Non-Zakat assets Debtors of Islamic financing, maturing in less than one year Zakat assets Property and equipment - net Non-Zakat assets Long-term intangible assets Non-Zakat assets