1Second Edition | April 2020

Other Statutory Considerations and Requirements 1. Transactions with related parties, the endowment founder, his descendants, the board of trustees, and other beneficiaries of the endowment or the Zakat payer owned thereby are subject to the Transfer Pricing Rules issued by Resolution of the Board of Directors of the Authority No. (19-1-6) dated 25 Jumada I 1440 AH (corresponding to 31 January 2019), and any amendments thereto. 2. A Zakat payer that has been granted a decision of exemption from Zakat collection remains subject to the other provisions of the Regulations and any amendments thereto. The Zakat payer is required to comply with the remaining provisions, including, but not limited to: registration, maintenance of commercial books, examination, objection and appeal procedures, and other applicable requirements. 3. If it is established that the Zakat payer has provided incorrect information or has failed to comply with these rules, ZATCA has the right to revoke the previously issued decision of exemption from Zakat collection and reassess Zakat based on the information available to it, in accordance with the provisions of the Regulations. 4. If the Zakat payer issues a certificate from a certified public accountant, it must be prepared in accordance with the model adopted by ZATCA, as set out in the Annex to this Guideline(2). 5. These conditions shall apply without prejudice to the provisions of the laws and regulations governing endowments and the related regulations in force in the Kingdom of Saudi Arabia, as well as any amendments thereto. (2)  Annex: Model Certificates of the Certified Public Accountant 3.4 Third: Law of Charitable Associations, Non-Government Organizations, and Training Units 3.4.1 Introduction to the Rules Governing Exemption of Charitable Associations, Non- Government Organizations, and Training Units from Zakat Collection The Implementing Regulations for Zakat Collection, under Section Two entitled “Persons Not Subject to the Provisions of the Regulations and Those Exempt Therefrom”, in Article Seven, set forth the provisions establishing the conditions under which charities, foundations, and training units are not subject to Zakat collection. The following sections will review these conditions, with examples and explanations.