Contents
1. Introduction
2. Zakat Payers for Zakat Assessment on an Arbitrary Basis
3. Estimation of Zakat Base for Arbitrary-Assessed Zakat Payers
4. Zakat Year
5. Minimum Limit for Zakat Assessment on Arbitrary Basis
6. The Shift from Zakat Accounting Based on Arbitrary Assessment to Commercial Books
7. Objection and Appeal Procedures
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.
Introduction
This document is a guideline and represents the concept and interpretation of the Zakat, Tax and Customs Authority's in relation to the application of the Rules for Calculation issued under the Ministerial Resolution No. 2502 dated 31442/7/H (corresponding to 152021/2/) and the Zakat Implementing Regulations issued under Ministerial Resolution No. 2216 dated 71440/7/H (corresponding to 142019/3/). It is not a statutory document, and the information given in this booklet is only for guidance and non-binding on the Authority, and shall not relieve the user from referring to the Zakat Implementing Regulations and the relevant rules and decisions.
Zakat Payers for Zakat Assessment on an Arbitrary Basis
Any Zakat payer who does not have commercial books that are the results of the business and is not required to issue financial statements in accordance with applicable laws, regulations, and rules.
Estimation of Zakat Base for Arbitrary-Assessed Zakat Payers
The zakat base of the arbitrarily assessed zakat payers is estimated based on the capital commensurate with the size of the Zakat payer's activity.
It is estimated in accordance with the following formula: