On 15 February 2025, the Zakat, Tax, and Customs Authority (ZATCA) issued Ministerial Resolution (MR) 947, dated 26/07/1446 AH (26 January 2025), amending Article 4(1)(d) of MR 1007. This amendment pertains to the application of the new Zakat regulations (issued under MR 1007 on 29 February 2024 and published in the Official Gazette on 21 March 2024) for fiscal periods beginning before 1 January 2024.
Key highlights and amendments
- Earlier provision: Under Article 4(1)(d) of MR 1007, Zakat payers were initially permitted to apply the new Zakat regulations for fiscal periods beginning before 1 January 2024, by submitting the request to ZATCA within 60 days from the publication of MR 1007, i.e., by 19 May 2024.
- Application rights: Additionally, MR 1007 provided Zakat payers the right to apply the provisions of the new Zakat regulations for fiscal periods beginning before 1 January 2024 within 60 days from the date of notification of commencement of assessment procedures by ZATCA.
- Extended timeline: MR 947 now extends the timeline for Zakat payers to opt for applying the provisions of the new Zakat regulations for fiscal periods beginning before 1 January 2024 to 30 April 2025.
Next steps for Zakat payers
- Utilize the extended deadline: Zakat payers should take advantage of the extended deadline provided under MR 947 and consider conducting an impact assessment to evaluate the potential benefits of the New Zakat Regulations for fiscal periods beginning before 1 January 2024. If the assessment reveals potential benefits, the Zakat payer may consider submitting an application for revision of return based on the New Zakat Regulations with ZATCA.
- Expert assistance: Please feel free to reach out to our team of experts to guide you through this important update and assist you in evaluating the potential for Zakat optimization.
Riyadh Office
Tareq Al Sunaid Head of Tax – Saudi Arabia |
Salam Eido Partner, Head of Tax - Riyadh
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Sadia Nazir Partner, Head of Transfer Pricing and International Tax |
Ali Sainudheen Partner, Domestic Tax
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Jigna Sampath Partner, Transfer Pricing/ Tax Leader, Financial Sector |
Ajay Garg Partner, Indirect Tax |
Waqas Memon Principal, Domestic Tax |
Amr Alsaleh Director, Domestic Tax |
Asadullah Azmat Director, Indirect Tax |
Qasim Malik Director, Domestic Tax
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Bilal Mansoor Director, Transfer Pricing
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Jeddah Office
Anan Sijini Partner, Domestic Tax |
Jawad Inam Director, Indirect Tax |
Khobar Office
Mohammad Kamran Sial Partner, Head of Tax - Khobar |
Mohamed Gouda Director, Domestic Tax
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Ankur Agarwal Director, Indirect Tax |
