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June 26, 2026
1. Agriculture Sector Definition
2. The Authority's Method to Calculate the Zakat Base for Zakat Payers Who Keep Commercial Books
3. Example of Calculating Company's Zakat
4. Rules for Zakat Base
5. Agriculture Items
The Zakat, Tax and Customs Authority ('ZATCA', 'Authority') has issued this Guide for the purpose of clarifying certain tax treatments concerning the implementation of the statutory provisions in force as of the Guide's issue date. The content of this Guide shall not be considered as an amendment to any of the provisions of the Laws and Regulations applicable in the Kingdom.
Furthermore, the Authority would like to highlight that the clarifications and indicative tax treatments prescribed in this Guide, where applicable, shall be implemented by the Authority in light of the relevant statutory texts. Where any clarification, interpretation or content provided in this Guide is modified - in relation to unchanged statutory text - the updated indicative tax treatment shall then be applicable prospectively, in respect of transactions made after the publication date of the updated version of the Guide on the Authority's website.
This sector is defined as the exploitation of natural plant and animal resources, and consists of crop cultivation, animal breeding, collection of timber and other plants, animals or animal products
The Authority uses the indirect method (the sources of funds method) to reach the zakat base. This method is based on the following:
(Additions): Adding the zakat payer's internal sources of funds and sources of external funds utilized for the deductible financing.
(Deductions): Non-Zakatable and Zakatable assets are deducted.
Zakat base = Additions - Deductibles
Additions:
Capital.
Revenue and advance payments.
Long-term liabilities (maximum total deductions from the base).
Reserves at the beginning of the year.
Retained earnings.
Profits under distribution.
Adjusted net profit.
Provisions at the beginning of the year.
Change in fair value.
Any item utilized in financing deductible asset.
Deductions:
Net fixed assets
Capital work in progress
Intangible assets.
Zakatable investments.
Incorporation expenses.
Adjusted net loss for the year.
Adjusted accumulated loss or according to the lists, whichever is less.
Property and equipment.