General Manual of Zakat

Zakat Collection in the Kingdom of Saudi Arabia The collection of Zakat and its disbursement to those entitled is one of the basic tasks of the State, as stipulated in the Basic Law of Governance in Article 21, which reads as follows: (Zakat shall be collected and disbursed in its disbursement channels). Article 7 set forth evidence of the State’s attention to the duties of Sharia and its commitment thereto in general, which includes collecting Zakat and disbursing it to the beneficiaries. It stipulates as follows: (Government in Saudi Arabia derives power from the Holy Qu’ran and the Prophet’s tradition. They are the rules governing the Law as well as all State laws). In confirmation of the foregoing, during the reign of the Founder King Abdul-Aziz -may Allah have mercy on him- Royal Decree No. (178634/28/2/) dated Jumada Al Awl 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 as well as executive ministerial resolutions, in addition to the regulations and circulars, including: Royal Decree No. (M/40) dated Rajab 2, 1405 AH, and the executive regulations for collecting zakat issued by Ministerial Resolution No. (2082) dated Jumada Al-Thani 1, 1438 AH corresponding to (28 February 2017 AD), and the executive regulations for collecting zakat issued by Ministerial Resolution No. (2216) dated 7 Rajab 1440 AH corresponding to (14 March 2019 AD), which applies to the zakat years beginning ON OR AFTER 1 January 2019 for all taxpayers, except for those who are accounted for by the discretionary method according to Chapter Four of the regulations, where the application of the regulations applies to their declarations submitted after December 31, 2019 AD. Therefore, the executive regulations for collecting zakat issued on 7 Rajab 1440 AH do not apply to fiscal years prior to this date, and such years are treated in accordance with the regulations and instructions applicable before that date. The Executive Regulations for Levying Zakat has been particularly concerned with clarifying the provisions for levying commercial activities, in addition to other zakat funds, as well as the requirements for submitting the Zakat declaration, procedures for examination, assessment, and payment, and their respective timelines. 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. (61) 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.”