General Manual of Zakat

The ZATCA's Right to the Examination The examination is an audit carried out by ZATCA to verify the compliance of the taxpayer with the provisions of the Regulations. The examination may be carried at the taxpayer's workplace, at the ZATCA's headquarters or any other place determined by ZATCA. ZATCA will issue a prior notice stipulating the examination carrying out, details of the required information and documents, and when necessary; the same will specify the zakat periods to be reviewed. During the examination period, the ZATCA's employee may visit the taxpayer's workplace to verify that the taxpayer complies with all zakat obligations as set out in the Executive Regulations for Levying Zakat. The taxpayer shall allow the examiner to access all invoices, books, records and accounting documents maintained by it upon request for the purposes of examination by ZATCA. 27 10.3 Assessment Procedures: When ZATCA notices any error in the zakat declaration or any other document submitted by the taxpayer during the examination period or any other case, a zakat assessment may be issued by ZATCA to correct this error. 28 26 Article (19), ZATCA has the right to request the data and documents needed by it from the taxpayer, Executive Regulations. 27 Article (19), Executive Regulations 28 Article (20), ZATCA issues the assessment including its approval of the declaration or its adjustments, Executive Regulations. In addition, ZATCA shall notify the taxpayer of the assessment issued by it and clarify its right to object to the assessment. The assessment issued by ZATCA shall at least indicate the following: ● Total Payable Zakat ● Payment due date ● Assessment calculation basis 10.4 Reassessment: If ZATCA, at any time, finds that the data provided by the taxpayer is incorrect, the same may reassess based on the correct information no later than (5) five years from its awareness date of that information. ZATCA may refer whoever provided incorrect or misleading information to the competent authorities to apply the legally prescribed penalties. 10.5 Correction of Errors and Obsolescence: ZATCA may correct misapplications of any of the provisions of the regulations or laws within (5) five years from the end date of the time limit for submitting the zakat declaration. This time limit is extended 29 to (10) ten years from the date of the taxpayer‘s submission of the zakat declaration in the following cases: ● Submission of the zakat declaration after the statutory time limit. ● Submission of an incomplete zakat declaration or on forms other than those prepared by ZATCA. ● Submission of the zakat declaration in violation of the provisions of the Regulations. ● Failure to pay the zakat payable on the basis of the zakat declaration during the statutorytime limit. 30 29 Article (21), Executive Regulations. 30 Article (22), errors may result from calculations or placing a wrong number, Executive Regulations. Likewise, ZATCA may correct errors resulting from calculations (addition, subtraction, multiplication and division), or placing a wrong number in place of the correct number, and the like, within (10) ten years from the expiry date of the time limit for submitting the zakat declaration. Within (5) five years from the end date of the time limit for submitting the zakat declaration. This time limit is extended to (10) ten years from the date of the taxpayer‘s submission of the zakat declaration in the following cases: ● Submission of the zakat declaration after the statutory time limit. ● Submission of an incomplete zakat declaration or on forms other than those prepared by ZATCA. ● Submission of the zakat declaration in violation of the provisions of the Regulations. ● Failure to pay the zakat payable on the basis of the zakat declaration during the statutory time limit.