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KSA Corporate Compliance

KSA Business Zakat (ZATCA) Calculator

Companies owned by Saudi or GCC nationals pay zakat on a base defined by ZATCA — not on profit and not on revenue. The 2024 Executive Regulations (Ministerial Resolution 1007) rebuilt the computation: the base starts from equity and equity-like items plus qualifying non-current liabilities, deducts qualifying assets, is floored by the Article 27 minimum against adjusted net profit and capped by the Article 28 maximum, and the 2.5% rate is prorated by the actual days in your fiscal year — a Gregorian year pays ≈2.577%, not 2.5%. Mixed Saudi–foreign companies split the same profit between zakat and 20% corporate income tax. This calculator estimates all of it from your balance-sheet figures.

Capital + retained earnings + reserves + qualifying provisions + shareholder credit loans (closing balances).

Treasury stock + carried-forward/retained losses + employee equity programmes.

Long-term debts, lease liabilities, EOSB provisions and similar items added to the base (Art. 25 attribution rules simplified).

Net fixed assets + intangibles + qualifying KSA investments + projects under construction + right-of-use assets, etc.

Net profit after zakat-return adjustments (provisions, disallowed items). If unsure, use your book profit.

Zakat applies to this share of the base; the remaining foreign share pays 20% corporate income tax instead.

Advanced (Art. 27/28 refinements — optional)

Refines the Article 27 minimum: base = min(non-deducted assets + profit difference, adjusted net profit). Left blank, the floor is the adjusted net profit.

Activates the Article 28 maximum: the base cannot exceed ownership value + the profit difference.

Your ZATCA Liability

Enter your balance-sheet figures to see the zakat base, the applied caps, the day-prorated rate and the zakat/CIT split.

About Business Zakat in Saudi Arabia

Zakat in Saudi Arabia is levied on companies in proportion to their Saudi and GCC ownership, administered by ZATCA. It is not an income tax: the base is built from the funding side of the balance sheet — capital, retained earnings, reserves, qualifying provisions and non-current liabilities — minus the assets the regulations allow you to deduct (net fixed assets, intangibles, qualifying investments, construction in progress and similar long-term items). The Executive Regulations for Zakat Collection, approved by Ministerial Resolution 1007 on 21 March 2024, govern fiscal years starting on or after 1 January 2024 and anchor every item to the closing balances of your financial statements.

Two guardrails stop the base from drifting: the Article 27 minimum compares your calculated base with the adjusted net profit — if the base is lower, it is lifted to the lesser of (non-deducted assets + the difference between adjusted and book profit) and the adjusted net profit itself; with negative results and no adjusted profit, no zakat is due at all. The Article 28 maximum caps the base at the ownership value in your financial statements plus that same profit difference. Between floor and cap, deduction planning has real but bounded value.

The rate detail most finance teams miss: 2.5% is the rate for a Hijri year of 354 days. Companies reporting on the Gregorian calendar pay a rate prorated by the actual days — approximately 2.577% for 365 days. On a SAR 100 million base, that difference is about SAR 77,000 a year, and fiscal periods shorter than 354 days fall outside zakat entirely. Mixed-ownership companies split the same year between two regimes: the Saudi/GCC shareholding percentage at year-end determines the zakat share, while the foreign share of taxable income pays 20% corporate income tax under the Income Tax Law.

Compliance runs through the ZATCA portal: registration, the annual zakat return within 120 days of year-end, and payment. ZATCA may reassess declarations for five years — ten for late or incomplete filings — and may estimate zakat for payers who fail to file. Objections go to the Committee for Resolution of Zakat, Tax and Customs Violations after paying the undisputed amounts plus 10–25% of the disputed dues or providing a guarantee. This calculator estimates the order of magnitude and the caps that bind you; the final item-by-item base belongs in your zakat return with professional review.

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