Zakat Transactions in the Construction&RET Sectors

Practical Examples Balance Sheet (Statement of Financial Position) as of 31/12/2019 Assets SAR SAR Cash in hand and at banks Retained cash Term Murabaha deposits with banks Trade and other receivables Advances to contractor Unbilled revenue Prepaid expenses and other debit balances Total current assets Non-current assets Investment in bank deposits Advances to some founders Projects under construction Net investment in financial leasing contracts (Build, Own and Transfer, etc.) Investment properties Other long-term assets Total assets Property, plant and equipment Liabilities and Shareholders’ Equity Current liabilities SAR SAR Obligations under finance lease contract - current portion Short-term interest-bearing loans Advances from customers Unrealized revenue Account payables Accrued expenses and other credit balance Provision for Zakat Current portion of term loan Total current liabilities Non - current liabilities Obligation under finance lease contract Provision for end-of-service benefits Term loans Advance payments against lease contracts Total liabilities Equity Capital Statutory reserve Retained earnings Total equity Total liabilities and equity Income Statement for the Period from 1/1/2019 to 31/12/209 SAR Revenues Cost of revenues Gross profit Selling and marketing expenses Administrative and general expenses Other loss (net) Income from operations Financing charges (net) Profit before Zakat and income tax Zakat Profit for the year Description Opening Balance Provided During the Year Utilized During the Year Closing Balance SAR SAR SAR SAR Provision for end-of- service benefits Total Movement of Provisions Zakat Calculation Item Amount Adjustment to activity result SAR Net profit before Zakat and income tax Add: Provision for end-of-service benefits provided during the year Total adjustment to activity result Additions to the Base Shareholders’ equity SAR Capital Statutory reserve Total Liabilities on the Zakat payer Obligations under finance lease contract Term loan Advance payments against lease contracts Provision for end-of-service benefits - opening balance minus the amount utilized during the year Total external sources of funds subject to Zakat Total additions to the base Deduction from Zakat Base SAR Property, plant and equipment Projects under construction Net investment in financial leasing contracts (Build, Own and Transfer, etc.) Investment properties Total deductible assets Zakat base without the adjusted profit for the year Zakat at 2.578% of the Zakat base without the adjusted profit Adjusted profit Zakat at 2.5% of the adjusted profit Total Zakat 6. Real Estate Activities Sector