How do you calculate the zakat of your facility in Saudi Arabia?

Your guide to How do you calculate the zakat of your facility in Saudi Arabia? Learn about the importance of zakat, its amount,

and the most important zakat terminology for small print to obtain CFOONLINE for the financial office in the Kingdom of Saudi Arabia,

which is distinguished by its cadre of experienced accountants and efforts to achieve success with its clients.

The amount of zakat

Your establishment has an annual zakat of 2.5% for each Hijri year, and zakat is paid by submitting the zakat declaration within a period not exceeding 120 days from the end of the zakat year.

note :

If your fiscal year is a calendar year, then the zakat calculation will be in days, by applying the following equation:

Zakat rate for the taxpayer’s fiscal year = 2.5%/days of the Hijri year (354 days) * the number of actual days of the zakat year

What is the Zakat declaration?

A form that allows you to submit declarations related to zakat during a specific financial period via the electronic portal: zatca.gov.sa

note:

In case of amendment, you must attach the reasons and documents and amend the financial statements.

How do you calculate the zakat of your facility؟

This article was prepared How do you calculate the zakat of your facility in Saudi Arabia? In our CFOONLINE office, we provide all services that benefit the owners of small and medium enterprises.

We have a staff of the most skilled and experienced accountants and are ready for any advice to our clients.

There are two ways to calculate zakat:

First: my appreciation

In it, we calculate the amount of Zakat in an estimated manner based on a number of data, most notably:

1. Sales disclosed in the VAT return.
2. Data disclosed in the real estate disposal tax.

Second: accounts

We calculate zakat based on your financial statements according to the financial statements approved by a chartered accountant, and zakat is paid within 120 days from the end of the zakat year.

note:

You have the right to switch from the discretionary method to the calculations method. However, when switching to the calculations method,

it is not allowed to return to the discretionary method except by submitting an application to the Authority, which will be studied and answered with approval or not.

How do you pay your zakat?

If you are one of my discretionary payers, after 12 months have passed on your commercial registration, the amount of zakat and the invoice number will be issued.

Steps to pay zakat

1. Login to your account on the website: zatca.gov.sa through the unique number, which you can obtain from the Zakat, Tax and Customs Authority.
2. Selection of unpaid bills
3. You can pay your Zakat due in two ways:

• Automated teller machines
• Pay

note:

The distinctive number is a reference number for your establishment for the Zakat, Tax and Customs Authority. It is automatically registered when you issue the commercial registration.

Zakat installment

In order to facilitate the process of paying zakat, it is possible to pay in installments in cases where you face difficulties in paying the amounts due in full.

You can request payment in installments through the website of the Customs and Zakat Tax Authority.

Objection to the Authority

Learn about the steps to object to the Zakat Authority:

1. Log in to your account on the Authority’s website
2. Click on the “Zakat and Income Tax Returns for Foreign Establishments” icon, then select “Objections”.
3. Select “Request objection to declaration”
4. Fill in the application form
5. State the reasons for the objection and attach the supporting documents to your request
6. You will receive a notification of receipt of the application via text messages and e-mail

note:

It is not possible to object to the Authority after 60 days have passed from the date of notification of the decision.

Where does your zakat go?

We at CFOONLINE have prepared a table showing the mechanism of Zakat payment:

1. You pay your zakat
2. The authority checks and reviews the amount of zakat
3. The amount of zakat shall be transferred to the Ministry of Human Resources and Social Development “The Agency for Social Security and Empowerment”
4. Zakat is paid to social security beneficiaries

Turn off the token

When canceling the commercial registration, what should you do as a taxpayer?

It is necessary to apply for the suspension of the distinguished number after paying the dues that have been completed for 12 months.

Why should the token number be suspended?

In order not to calculate any zakat dues on your facility, you can submit a request to stop the distinguished number through the electronic portal of the Zakat Tax Authority.

We are pleased at CFOONLINE as an authorized financial office in Riyadh to provide advice and assistance to our clients.

note:

In the event that the commercial registration is transferred to the ownership of another person, the distinctive number is not transferred, so it must be suspended in advance, the dues paid and a new registration submitted by the new taxpayer.

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Frequently Asked Questions:

• What is my estimated fiscal year?

It is 354 days or more and starts from the date of issuance of the commercial register, the date of obtaining the first license, or the date of depositing the capital, whichever is earlier.

• What is the minimum estimated zakat on my taxpayer?

Zakat for the taxpayer according to the rules of calculating the estimated Zakat of my taxpayer must not be less than 500 Saudi riyals.

• What are the funds subject to zakat?

Any money resulting from a business intended to make profits, whether it is a commercial or service business or otherwise.

• What is the zakat assessment?

A decision by the Authority disclosing its acceptance of the statement or amending it in accordance with the available information and the applicable procedures in the Authority.

• What is the unique number?

It is a reference number for your establishment for the Zakat, Tax and Customs Authority. It is automatically registered when you issue the commercial registration.

We are in the CFOONLINE office with you and at your service 24 hours a day. You can contact us by phone or by mail, or we are honored to have you in our office.

We are ready to provide various types of accounting services for small and medium enterprises, leading our customers towards success and excellence.

In conclusion, in our article, how do you calculate the zakat of your facility in Saudi Arabia? By mentioning the most important points in a simplified manner to facilitate the explanation of the most important

ideas for entrepreneurs who own small or medium enterprises and companies and who are thinking of establishing their own business in Saudi Arabia,

and we at CFOONLINE are ready for any accounting consultation and at any time we welcome you to facilitate business and reach our customers towards success.

The most important sources:

zatca.gov.sa

ar.wikipedia.org