General Manual of Zakat

Zakat Payment: Erad system shall issue an electronic invoice notification immediately after the declaration is submitted, including the payment number and the total amount of zakat due under the declaration. The taxpayer shall pay the zakat due on it through a bank transfer through the electronic «SADAD» System, so that payment shall be made before exceeding the statutory period mentioned in Section (9) above (120 days from the end of the fiscal year). Notification of Submission Invoice Declaration Adjustment In the event that the taxpayer finds that there is an error or incorrectness of the amountscontained in its zakat declaration, the same may submit a request to adjust its declaration by applying for the adjustment through Erad System. In the event that the taxpayer's request is approved, the taxpayer shall adjust and correct the entered data, and then re-submit the declaration again through the system. Attached below are the modification screens of the declaration 9.4 Maintaining Commercial Books: General Principles: The taxpayer shall maintain the complete commercial books used in preparing its zakat declaration accurately within the KSA and in Arabic, in order to ensure the correctness of calculating zakat and the supporting notes. As the burden to prove the correctness of the items and any other data contained in the declaration lies with the taxpayer itself. 24 In the event that the taxpayer is unable to prove the correctness of the items contained in its declaration, ZATCA has the right not to approve any of the items contained in its declaration or to make an estimated assessment according to its point of view in light of the circumstances and facts related to the case and the information available to it. 25 24 Article (18), Executive Regulations. 25 Article (11), Executive Regulations. Required Records: The taxpayer subject to the provisions of the Executive Regulations for Levying Zakat shall keep its own records for no less than (10) ten years. The following are examples of such records to be kept and submitted to ZATCA if requested by the taxpayer. ● Accounting books ● Bank statements and any financial records ● Import and export documents ● Sales and expense contracts ● Invoices issued from the company The records to be kept and submitted to ZATCA if requested by the taxpayer: Import and export documents Bank statements and any financial records Accounting books Invoices issued from the company Sales and expense contracts * The above-mentioned records shall be maintained for a period of no less than (10) years. Expected Form and Term of Maintenance: Records may be maintained in paper or electronic form. In both cases the records shall be kept in the KSA (either physically or through access to the relevant server, where these records are stored). If the taxpayer wants to maintain its records electronically: In order to provide the ZATCA's employee with copies of the records upon request during the audit and examination. 10. ZATCA’s Tasks 10.1 The ZATCA's Right to Request Data: Taxpayers shall provide the information requested by ZATCA for the purpose of proving their zakat obligations, whether the information is requested during an official examination or at any other time (provided that it does not exceed 10 years). The taxpayer shall provide all data no later than (20) twenty days from the date of receiving the data request. 26 ZATCA has the right to access relevant information kept by any third party directly from that party, including direct access to records in general.