22Different Activities

About Zakat Zakat is the third pillar of Islam and one of the most important financial acts of worship. It is mentioned repeatedly in the Quran and is paired with prayer in more than eighty verses. Zakat distinguishes the Muslim community from others and represents a superior aspect of Islamic legislation by being an effective means of combating poverty and alleviating the suffering of the needy, thereby achieving social solidarity.. 1.2 Collection of Zakat The significant status of Zakat in Islam is evidenced by the state›s responsibility to manage and supervise its collection. The state is authorized to collect Zakat from apparent wealth and distribute it to those who deserve it. This is carried out by appointing Zakat officers to visit asset owners throughout the Islamic state, calculate and collect their Zakat dues, and oversee the dues distribution to eligible recipients. The Zakat, Tax and Customs Authority is tasked with the collection of Zakat, handling all related procedures: from the registration of taxpayers to calculating the amount of Zakat due. This includes overseeing the submission of Zakat declarations and payment procedures, examining submitted data, verifying the data through the Authority’s human resources, and ultimately issuing the final Zakat certificate. The Authority also handles objections of the Zakat payers to its Zakat assessments. 1.3 Application of Zakat Collection in the Kingdom of Saudi Arabia The collection and distribution of Zakat to eligible recipients is a fundamental duty of the state, as stipulated in Article 21 of the Basic Law of Governance: «Zakat shall be collected and disbursed as prescribed by Sharia.» Article 7 also reflects the state›s commitment to Sharia duties, including the collection and distribution of Zakat, stating: «Governance in the Kingdom of Saudi Arabia derives its authority from the Quran and the Sunna of the Prophet (peace be upon him). The Quran and Sunna shall govern this Law and all the laws of the State.» Supporting this, the founder King Abdulaziz issued Royal Decree No. (17/2/28/8634) on 29/6/1370 H. April 6, 1951 ordering the collection of Zakat. This was followed by numerous reinforcing royal decrees, ministerial resolutions, explanatory and interpretive regulations, and circulars. These include Royal Decree No. (M/40) dated 2/7/1405 H. (October 31, 1884), the implementing regulations for Zakat collection issued by Ministerial Resolution No. (2082) dated 1/6/1438 H. (February 28, 2017 ), and the implementing regulations for Zakat collection issued by Ministerial Resolution No. (2216) dated 7/7/1440 H. (March 14, 2019 ), which apply to the Zakat years starting on or after January 1, 2019 for all Zakat payers, except those assessed by the presumptive method under Chapter 4 of the Regulations, which applies to their declarations submitted after December 31, 2019. Thus, the implementing regulations for Zakat collection dated 7/7/1440 H. do not apply to fiscal years before this date, as these years are governed by previous regulations and instructions. The implementing regulations for Zakat collection specifically address Zakat rules in commercial activities, the requirements for submitting Zakat declarations, and the processes for assessment, examination and payment as well as their respective timelines. The Zakat revenue collected by the Zakat, Tax and Customs Authority is deposited into the Social Security account, which handles its disbursement to the poor and needy in accordance with Royal Decree No. (61/5/1) dated 5/1/1383 H. (28 May 1963 ). Paragraph (1) of the decree states: «Zakat shall be fully collected from all joint stock and others companies as well as individuals subject to Zakat,» and paragraph (2) states: «All the amounts collected shall be deposited into the Social Security Fund.»