Saudi Arabia: Additions and amendments to rules for calculating Zakat on financing activities
Minister of Finance approved additions and amendments
Minister of Finance approved additions and amendments
The Minister of Finance approved additions and amendments to the rules for calculating Zakat on financing activities, through Ministerial Resolution No. 137 (dated 22 August 2023 and published in the official gazette on 22 September 2023).
- Article 1: The definition of “financing activities” is amended to include direct and indirect financing funds licensed by the Capital Market Authority (CMA), in addition to banks and financing companies licensed by the Saudi Central Bank.
- Article 4: Sub-clauses (4) and (5) below were added, providing more details on the sources of funds subject to Zakat related to financing activities.
- (4) Net assets of unit holders in direct and indirect financing funds
- (5) With the exception of banks and finance companies licensed by the Saudi Central Bank, all sources of the Zakat payer’s funds, except for liabilities that fall due within less than one year
- Article 6 – Clause (1) was amended as follows: The values included in the audited financial statements at the end of the Zakat year are relied upon in net when calculating the Zakat base for financing activities, with the exception of what is stated in sub-clause (1) of Article 4 of these rules, and where this exception does not apply to direct and indirect financing funds.
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