Zakat Transactions in the Construction&RET Sectors

Items of Zakat Base (Deductibles) The deductible items consist of the Zakat base for the Zakat payer who maintains commercial books of non-zakatable assets, such as fixed assets, assets subject to collect of Zakat in another base such as investments in the capital of companies subject to Zakat in the Kingdom, or which the Zakat payer has paid their Zakat independently, and some other assets specified in the Regulation. 3.2.1. Concepts Related to Deductions The Authority’s method of calculating Zakat base includes deduction of all non-zakatable assets, assets which have their Zakat paid independently and certain other items. The main deductible items consist of the following: 1. Non-Zakatable assets, including fixed assets, such as buildings, machinery and equipment, furniture, intangible assets, etc. 2. Zakatable assets, including investment in shares of Saudi companies or foreign companies subjected to Zakat independently in accordance with the rules specified in the Regulations. Deducted items from the Zakat base? In general, the main deducted items are: Non-Zakatable assets Include fixed assets (e.g. buildings, machines and equipment, furniture, intangible assets, etc) Zakatable assets Include investment in Saudi of foreign companies subjected to Zakat independently in accordance with the guidlens of the Implementing Regulations Intangible Assets Furniture Investment in shares Machine and Equipment Buildings Item SAR Net fixed assets and equivalents Capital work in progress Intangible assets Investments in entities inside and outside the Kingdom for non-trading in accordance with the rules mentioned below Net incorporation and pre-operating expenses and equivalent capital expenses Adjusted net loss in the Zakat year adjusted for Zakat purposes Adjusted net accumulated loss for Zakat collection purposes in accordance with the guidelines specified below Net value of properties under development for sale in accordance with the guidelines specified below Statutory deposit of insurance and reinsurance companies Inventories of agricultural inputs purchased for use in production 3.2.2 Items to be Deducted from the Base The following table shows examples of items that shall be deducted from the base: