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Who pays zakat
Saudi and GCC-owned companies and establishments pay zakat to ZATCA on the share owned by Saudi and GCC nationals. Where there is foreign ownership, the foreign share pays income tax (20%) instead, so mixed-ownership companies file a combined return.
How the zakat base works
Zakat is 2.5% of the zakat base. Under the current Zakat Collection Implementing Regulations (for years starting from 1 January 2024), the base is built mainly from equity and long-term funding sources, less certain long-term assets and investments, and cannot be lower than adjusted net profit.
Deadline and certificate
File and pay within 120 days of your year end — 30 April 2027 for a year ending 31 December 2026. Once filed and paid, you can obtain a zakat certificate, which is often needed for government contracts, banks and renewals.
Records
Keep zakat and income tax records for at least 10 years. Audited financial statements are normally filed with the return.
Frequently asked questions
Is business zakat the same as personal zakat?
No. This is the statutory zakat on businesses collected by ZATCA.
What if my year is not a full Hijri year?
The regulations adjust the rate for Gregorian years; your accountant applies it.
What if I disagree with an assessment?
You can object within the statutory period — act quickly.
Sources: Zakat, Tax and Customs Authority (ZATCA); Zakat Collection Implementing Regulations (2024).
General information as at the date above, not advice. Rules change — confirm your position with a qualified accountant.