1Second Edition | April 2020

Application of the Collection of Zakat in the Kingdom of Saudi Arabia The collection of Zakat and its disbursement to those entitled is one of the basic tasks of the Kingdom of Saudi Arabia, as stipulated in the Basic Law of Governance in Article 21, which reads as follows: (Zakat shall be collected and disbursed in its disbursement Sharia channels). Article 7 set forth evidence of the State’s attention to the duties of Sharia and its commitment to it in general, which includes collecting Zakat and disbursing it to the beneficiaries. It stipulates as follows: The government in Saudi Arabia derives power from the Holy Quran and the Prophet’s tradition. They are the rules governing the Law, as well as all State laws. In confirmation of the preceding, during the reign of the Founder King Abdul-Aziz - may Allah have mercy on him- Royal Decree No. (17/2/28/8634) dated Jumada Al Thani 29, 1370 AH, corresponding to April 6, 1951 AD, was issued, containing the order to collect Zakat. The said Royal Decree was followed by many royal decrees confirming it and executive ministerial resolutions, in addition to the regulations and circulars that explain and clarify it, including: Royal Decree No. (M/40) dated Rajab 2, 1405 AH, and the Implementing Regulations for the Collection of Zakat issued by Ministerial Resolution No. (2082) dated Jumada Al-Thani 1, 1438 AH. Corresponding to (28 February 2017 AD) and the Implementing Regulations for the Collection of Zakat issued by Ministerial Resolution No. (2216) dated 7 Rajab 1440 AH corresponding to (14 March 2019 AD), which applies to the Zakat years starting from January 1, 2019 AD for all Zakat payers, except for those who are accounted for by the arbitrary method according to the fourth section of the regulations, the application of the regulations applies to their declarations submitted after December 31, 2019 AD, and the Implementing Regulations for the Collection of Zakat issued by the Minister of Finance under Resolution No. (1007) dated 19 Shaban 1445 AH (corresponding to Thursday, 29 February 2024), which shall apply to fiscal years commencing on or after 1 January 2024 for all Zakat payers The Implementing Regulations for the collection of Zakat have been concerned with clarifying the provisions for levying commercial activities in general and have also elucidated the provisions for specific activities and cases. Moreover, the Regulation has encompassed the procedures for the collection of Zakat, as well as the rights and obligations of Zakat payers. The Zakat proceeds collected by ZATCA are received and deposited in the Social Security Account, which is responsible for disbursement to the poor and needy in accordance with Royal Decree No. (1/5/16) Dated 05/01/1383 AH corresponding to (May 28, 1963 AD), wherein Paragraph (1) provides for: “Zakat shall be collected in full from all joint stock companies, and others, and individuals who are subject to Zakat.” In addition, Paragraph (2) stipulates: “All amounts collected shall be returned to the Social Security Fund.”