General Manual of Zakat

Cessation of Activity for Liquidation Purposes The taxpayer shall be deemed ceased for liquidation purposes as soon as its liquidation procedure is opened, which results in the cessation of its activity. The liquidator shall notify ZATCA of the commencement of liquidation procedures and submit the declaration on their regular dates until the end of the liquidation and payment of the zakat amounts due to ZATCA 39 18. ZATCA‘s right to coordinate with government entities. ZATCA has the right to coordinate with government and non-government entities in all relations related to zakat, and all government and semi-government entities, companies in which the KSA contributes, and professional authorities shall provide ZATCA with the zakat information requested by it 40 38/39/40 Article (31) Executive Regulations 19. Request for Ruling If you are not aware of how to apply zakat to a certain activity or transaction you carry out, or plan to carry out, after referring to the respective statutory provisions and Guideline, you can submit an application to ZATCA for issuing a Ruling decision according to the Implementing Regulations for Zakat Collection issued by the Ministerial Resolution No. (2116) dated 17 RAJAB 1440H 20. Connect Us For more information about any transaction that is subject to Zakat collection, please visit ZATCA's website zatca.gov.sa or call the number 19993 21. Frequently Asked Questions (FAQ) FAQs about Procedures 1) If there are several establishments owned by the same partners, nay such establishments submit a consolidated Zakat declaration? Yes, establishments owned by the same partners, the holding company and its subsidiaries owned by the same partners may submit a consolidated zakat declaration. 2) How is the taxpayer accounted for if the first fiscal year is a short fiscal year? Zakat is calculated for the short fiscal year based on the number of days from the activity beginning date by dividing two and a half percent (2.5%) by the number of days of the Hijri year (354 days) multiplied by the number of actual days of the zakat year. Excluding adjusted net profit, it is subject to two and a half percent (2.5%) for the period. 3) How is the taxpayer accounted for if the first fiscal year is a long fiscal year or a Gregorian year? Zakat is calculated for the long fiscal year based on the number of days from the activity beginning date by dividing two and a half percent (2.5%) by the number of days of the Hijri year (354 days) multiplied by the number of actual days of the zakat year. Excluding adjusted net profit, it is subject to two and a half percent (2.5%) for the period. Number of actual days of the zakat year of the taxpayer cd Number of Days of the Year