General Manual of Zakat

Change in Equity or Legal Form of the Taxpayer: In the event of a change in the ownership or legal form of the taxpayer during the fiscal year, the taxpayer shall update the company‘s data through the ZATCA's portal (Erad) by following the registration steps previously mentioned in Section IV of this Manual. Upon approval of ZATCA to modify the data, the system will show the new data entered by the taxpayer. In the event of any change in the percentages, the calculation mechanism will be used in the days mentioned for all items of the zakat base, in accordance with the controls mentioned in item (2) above. 8.5 Transactions between Related Parties: In accordance with the transaction pricing instructions issued by the resolution of the Board of Directors of ZATCA No. (6-1-19) dated 25/05/1440 AH corresponding to (31/01/2019 AD) ; Zakat payers shall abide by Article (18) of the Transaction Pricing Instructions. 19 Article (15), a consolidated zakat declaration may be submitted based on consolidated accounts, the Executive Regulations. 9. Zakat Declarations of those who maintain Commercial Books ZATCA shall include the zakat declaration form in the taxpayer‘s account on the ZATCA‘s e-system (Erad), through which the taxpayer shall fill out the zakat declaration and pay the zakat no later than one hundred and twenty (120) days from the end of the zakat year. If the last day of this period coincides with an official holiday, it is extended to the first 20 working day thereafter. 9.1 Zakat Declaration Completion Instructions: The taxpayer fills out the zakat declaration form through Erad System (1087/https://www.zatca. gov.sa/ar/media). The zakat declaration is divided into five main parts as mentioned in Erad System, which are as follows20: Background Information Income Statement Additional Data Statement of Financial Position Transaction Pricing The taxpayer shall fill out the parts, according to the above-described order, as it is not possible to move from one part before completing the filling out the preceding part. The form will be available to be filled out by the taxpayer, on the first day after the end of its fiscal year. The taxpayer can access the zakat declaration form the official website: http://zatca.gov.sa/ Reminders shall be sent over (120) days, reminding the taxpayer to submit its declaration of the fiscal year. The taxpayer will have (120) days to file the zakat declaration after the end of the fiscal year (the last day of the period is the due day).