New Zakat collection regulations include independent treatments for many sectors: ZATCA

Logo of The  Zakat, Tax and Customs Authority (ZATCA) 

The Zakat, Tax and Customs Authority’s (ZATCA) new regulations for collecting Zakat offer independent Zakat treatments, encompassing various sectors such as real estate activities, construction, investment funds, insurance, financing, and others, said official spokesman Hamoud Al-Harbi.

Al-Harbi highlighted that the draft new regulation consists of 128 articles, whereas the current regulation consists of 33 articles, Al Eqtisadiah newspaper reported.

The regulations introduce various treatments regarding Zakat, with notable provisions including the acceptance of overdue receivables deduction from taxpayers to government entities from the Zakat base under specific conditions, the spokesman added.

Furthermore, the regulations entail the acceptance of cash guarantee deduction (systematic deposits) upon meeting certain conditions and other relevant treatments. Additionally, a dedicated chapter addresses the rights of the taxpayer, such as the right to determine the commencement of activities and amend the Zakat declaration, among others.

Al-Harbi confirmed that the new regulations will contribute to raising the level of voluntary compliance by taxpayers.

According to data available on Argaam, the Minister of Finance approved the executive regulations for Zakat collection (issue 1445 AH) in March 2023. These regulations came into effect for financial years starting from Jan.1, 2024, onwards, with the deadline for submitting declarations set for 2025, in alignment with the specified conditions and regulations.