Zakat Transactions in the Construction&RET Sectors

Zakat, Tax and Customs Authority The Council of Ministers issued a Resolution No. (570) dated 22 Ramadan 1442H corresponding to 4 May 2021 entailing to merge the General Authority for Zakat and Tax and the Saudi Customs Authority in one entity named Zakat, Tax and Customs Authority (ZATCA), which works on levying Zakat, collecting tax and customs duties and achieving the highest degree of compliance by tax and Zakat payers per the best practices and highest efficiency. ZATCA seeks to enable the Kingdom to be a global logistic hub by facilitating trade, protecting national security, and organizing and managing all activities related to customs work and ports in a way that guarantees leveling up its efficiency, productivity and competitiveness. This will be achieved though providing high-quality, client-centered services per the best practices. Royal Decree dated 29/6/1370 H. The implementing regulations of the Royal Decree (M/40) Ministerial Resolution No. (394) dated 7/8/1370 H. On 20/7/1438 H. Royal Decree No. (M/40) dated 2/7/1405 H. By Ministerial Resolution No. (2216) dated 7/7/1440 H. which mandates the collection of Zakat from Saudi nationals were issued under Ministerial Resolution No. (2082) dated 11/6/1438 H. to establish the Authority as a governmental body the Zakat, Tax and Customs Authority was formed by Council of Ministers Resolution No. (465) approving the Authority’s organization. which included the order to collect Zakat in full from all companies, institutions and other organizations as well as individuals who are subject to Zakat. the implementing regulations for Zakat collection wereissued applicable on or after 1 January 2019