22Different Activities

Definition of the Sector This sector includes a range of activities that support general business operations. The sector encompasses the following activities: ● Rental activities (provision of operational leasing services) ● Usage activities ● Travel agencies, tour operators, booking services, and related activities ● Security activities ● Service delivery activities for buildings and landscaping ● Office administrative activities, office support activities, and other business support activities The Most Important Items in the Statement of Financial Position for the Administrative and Support Sector and Their Zakat Treatment Item Item Nature Zakat Treatment Judgment Current assets Receivables from trading works support contracts Representing the amount payable by customers Non-deductible assets Not deductible from the base as they are Zakatable assets Current liabilities Payable installments current portion Representing obligations for the purchase of assets by installments External sources of funds utilized in financing deductible asset Added to the Zakat base to meet deductible assets Non-current liabilities Payable installments - Noncurrent portion Representing obligations for the purchase of assets by installments External sources of funds utilized in financing deductible asset Added to the Zakat base to meet deductible assets 8.2 Practical Examples Balance Sheet (Statement of Financial Position) as of 31/12/2019 Assets SAR SAR Assets Current assets Cash in hand and at banks Receivables from trading works support contracts Inventory Prepayments Total current assets Non-current assets Fixed assets Intangible assets Total non-current assets Total assets Liabilities and Shareholders’ Equity SAR SAR Current liabilities Payable installments - Current portion Accruals and other current liabilities Total current liabilities Non-current liabilities Payable installments - Non-current portion Provision for end-of-service benefits Total non-current liabilities Total liabilities Shareholders’ equity Capital Statutory reserve Retained earnings Total shareholders’ equity Total liabilities and shareholders’ equity Income Statement for the Period from 1/1/2019 to 31/12/2019 SAR Revenues from provision of business and lease services Cost of revenues Gross profit General and administrative expenses Income from operations Other revenues Profit before Zakat and income tax Zakat Profit for the year Description Opening Balance Provided During the Year Utilized During the Year Closing Balance SAR SAR SAR SAR Provision for end-of- service benefits Total Movement of Provisions Zakat Calculation Item Amount Adjustment to activity result SAR Net profit before Zakat and income tax Add: Provision for end-of-service benefits Total adjustment to activity result Additions to the Base Shareholders’ equity SAR Capital Statutory reserve Retained earnings Dividends distributed during the year Total Liabilities on the Zakat payer Payable installments Provision for end-of-service (opening balance minus the amount utilized during the year) Total external sources of funds subject to Zakat Total additions to the base Deduction from Zakat Base SAR Fixed assets Intangible assets Total deductible assets Zakat base without the adjusted profit for the year Zakat at 2.578% of the Zakat base without the adjusted profit Adjusted profit Zakat at 2.5% of the adjusted profit Total Zakat 9. Agriculture, Forestry and Fishing Sector