General Manual of Zakat

Other Procedures: The taxpayer‘s movable and immovable property shall be seized and sold sufficiently to pay the zakat dues after the end of the seizure procedures and the expiry of the notice periods in accordance with the statutory procedures in force, taking into account the following: ● ZATCA or the competent authority shall sell the seized property in accordance with the seizure provisions. ● ZATCA shall allow the taxpayer to submit a list of the property that it wants to exclude from the sale process if the sale value of its other property covers the dues owed by it to ZATCAs. ● Seizure and selling expenses, then zakat dues, shall be paid from the proceeds of the sale and any remaining amount shall be returned to the taxpayer immediately. ● The sale of the taxpayer‘s property is suspended during the period of administrative or judicial review of the assessment on the basis of which the seizure is imposed, with the exception of the property vulnerable to damage, and the property that the taxpayer requests from ZATCA to sell. In addition, ZATCA has the right, by virtue of Ministerial Order No. (16145) dated 01 / 04 / 1437 AH, to coordinate with the relevant authorities to prevent the taxpayer from participating in government tenders, recruiting any employees, or issuing and renewing work records and permits that enable it to engage in the activity. If the owner of the sole proprietorship dies and owes zakat dues to ZATCA that were not paid on time, such dues shall be collected before the estate is divided; otherwise the heirs will be required to pay them, each according to his share. Upon collecting the full zakat amounts due to it, ZATCA shall immediately notify the concerned government entities of the same to stop all actions taken against the taxpayer. ZATCA shall notify the taxpayer of all the actions taken against it under the Regulations. 15. Excess Amounts 15.1 Carrying forward the Excess Amount: If it appears that the taxpayer paid to ZATCA an amount in excess of the zakat due on it, this amount is considered an advance payment and precipitate of the subsequent zakat. If the taxpayer does not request ZATCA to recover the amount within (5) five years from its payment date, it shall be carried forward to the taxpayer‘s account for the subsequent zakat years. 36 15.2 Excess Recovery: In the event the taxpayer requests ZATCA to recover the amount within (5) five years, ZATCA shall examine the taxpayer‘s request and verify that there are amounts paid by it in excess, and end such amounts within (30) thirty days from the date of proving the taxpayer‘s right to recovery and after requesting it. No request for recovering amounts paid in excess shall be considered if there are declarations that have not been submitted to ZATCA, and also in cases of objection or appeal, only after a final judgment is issued confirming the taxpayer‘s entitlement to these amounts. The excess amounts shall be refunded to the taxpayer after a final judgment is issued for it. The taxpayer may request carrying forward the amounts paid in excess to pay any other dues owed by it to ZATCA, whether zakat or tax. The date of the taxpayer‘s request for the carry forward is the date proving the fact of paying these dues. 36 Article (29), How to recover the excess amounts paid for zakat, Executive Regulations. 16. Correspondence and Notifications 16.1 Methods of Communication used in Correspondence and Notifications: Correspondence and notifications sent from ZATCA to the taxpayer shall have their legal effects if they are through the means approved by ZATCA, including but not limited to: The ZATCA‘s portal, mobile messages, e-mails, registered mail or any other means approved by ZATCA. Correspondence and notifications sent from the taxpayer to ZATCA shall have their legal effects if they are sent through the ZATCA‘s portal or any other approved means determined by ZATCA when it is not possible to submit them through the ZATCA‘s portal. 37