Zakat calculation in Saudi Arabia 1444 AH

Zakat calculation in Saudi Arabia 1444 AH is a religious duty performed by Muslims in Saudi Arabia and the world,

and it is one of the five pillars of Islam.

Zakat is calculated on funds that exceed the minimum threshold, and is paid for distribution to the needy, the poor, and other deserving people.

In Saudi Arabia, there is the Zakat and Income Authority, which works to collect zakat and distribute it to those who deserve it.

Every person in Saudi Arabia who meets the required conditions must pay zakat,

and it can be easily calculated through mobile and computer applications.

We at CFOONLINE are pleased to provide the necessary free advice through specialized and experienced accountants.

Definition of zakat

Zakat is one of the basic pillars of Islam, and it is an obligation imposed on Muslims who possess specific wealth,

and the percentage of zakat varies according to the type and value of wealth.

How is Zakat calculation in Saudi Arabia 1444 AH?

In our article, we will mention how to calculate zakat in Saudi Arabia 1444 AH corresponding to the year 2023 AD,

since in the Kingdom of Saudi Arabia,

the Ministry of Islamic Affairs, Call and Guidance manages zakat affairs according to the zakat system that was issued by Royal Decree No

. (M / 40) and dated 06/16/1439 AH corresponding to 3/ 3/2018 AD.

Zakat in Saudi Arabia is generally calculated by calculating the value of wealth at the end of the Hijri year,

and then calculating 2.5% of it and paying it as zakat, and this includes:

1. Cash and deposits in banks.
2. Realized profits.
3. Investments, stocks and real estate.
4. Gold, silver, jewellery, cars and other property that meet the legal requirements for zakat.

An individual or company must pay zakat when the annual payment date comes,

and this date is determined according to the Hijri calendar. Zakat can be paid online, at approved banks, or through post offices.

How to calculate zakat and income in Saudi Arabia 1444 AH

You need to follow the following steps to calculate zakat and income in Saudi Arabia:

1. Gross Income Calculation: Gross income is calculated from profits generated from work, investment, or any other sources of income.
2. Personal Expenses Calculation: Personal expenses are calculated, which include basic expenses such as rent, water, electricity, food, and clothing.
3. Debt Calculation: The debt owed by a person is calculated.
4. Assets account: The value of owned assets such as real estate, cars, jewelry, etc. must be calculated.
5. Zakat calculation: 2.5% of the total assets value must be calculated after deducting debts and personal expenses.

For example, if a person has a total income of 100,000 SAR,

personal expenses 20,000 SAR, debts 10,000 SAR, and the value of assets 150,000 SAR, then zakat can be calculated as follows:

Asset Value = 150,000 – 10,000 – 20,000 = 120,000 SAR

Zakat = 2.5% x 120,000 = 3,000 SAR

After calculating the zakat, it must be paid to the Zakat and Tax Authority in the Kingdom of Saudi Arabia.

You can view more information and updated details about the

calculation of zakat and income in the Kingdom of Saudi Arabia by visiting the website of the Zakat and Income Authority on the Internet.

The CFOONLINE office has collected for you in our article Zakat Calculation in Saudi Arabia 1444 AH the most important points about the Zakat calculation in Saudi Arabia for the year 2023.

Types of zakat

There are different types of zakat, including:

1. Zakat al-Fitr: It is the zakat that is paid at the end of the blessed month of Ramadan. It is given to the poor and needy before the Eid prayer.
2. Zakat on money: It is the zakat that is paid on the money that a person owns for a full year, and its value must be above the quorum specified in Islamic law. This zakat is paid to the poor, the needy and the needy.
3. Animal zakat: It is the zakat that is paid on profitable animals such as camels, cows and sheep, and it must be a specific percentage of the animals owned by the person.
4. Zakat on gold and silver: It is the zakat that is paid on the gold and silver owned by a person, and its value must be above the nisab specified in Islamic law.
5. Al-Rikaz Zakat: It is the zakat that is paid on the minerals that are extracted from the earth, such as gold, silver, copper and iron.
6. Zakat on crops and fruits: It is the zakat that is paid on agricultural crops and fruits that grow on the land, and it must be a specific percentage of the annual production.
7. Profit zakat: It is the zakat that is paid on the profits resulting from investment and trade, and it is paid at a specific percentage of the value of the profits.

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In this article, we will learn about the calculation of zakat in Saudi Arabia 1444 AH, the methods of calculating zakat in the Arab countries for the year 2023.

Zakat calculation in Jordan 2023

The Jordanian government imposes a zakat tax on financial assets owned by companies and individuals. Zakat is calculated at 2.5% of the value of net financial assets owned by companies and individuals for a full year.

It is required that the value of the net financial assets owned by the individual or the company exceed the minimum compulsory payment of zakat, which in Jordan is 12,000 Jordanian dinars.

Zakat is calculated annually in Jordan.

Zakat calculation in Tunisia 2023

The zakat of funds in Tunisia is governed by Law No. 2018-56 of June 4, 2018 relating to zakat on funds.

The zakat of funds in Tunisia is calculated at 2.5% of the net value of the funds owned for a full year, provided that the percentage of the minimum zakat due is 10 dinars.

The total funds subject to zakat in Tunisia include cash, bank deposits, securities, current accounts, real estate, vehicles, manufactures, stocks and shares of companies,

and other funds and assets owned by the person, association or company.

Individuals and companies must pay the annual zakat to the competent authorities in Tunisia.

Zakat calculation in Morocco 2023

The rules for calculating zakat in Morocco differ from the way it is calculated in other countries, but they can be summarized as follows:

• Nisab: It is the minimum wealth for which zakat must be paid, and in Morocco it is 50,000 dirhams.
• Ratios: It is the percentage that is calculated on the value of wealth to pay zakat, and the percentage varies according to the type of wealth, as it is 2.5% for money, bank deposits and financial investments, and 5% for land, real estate, livestock and crops.
• Zakat payment date: Zakat must be paid when the hijri year is completed, and it is calculated from the date of the last time zakat was paid.

Based on this information, Muslims in Morocco can calculate zakat, estimate the value of their wealth, and calculate the appropriate percentage for each type of wealth.

It is also possible to obtain assistance from the competent authorities in Morocco, such as the Ministry of Islamic Affairs, Endowments, Call and Guidance or local zakat centers.

Zakat calculation in Algeria 2023

Zakat is calculated in Algeria according to Islamic rules and regulations. Zakat is imposed on financial assets and assets that exceed the minimum zakat threshold, which is 60,000 Algerian dinars.

Zakat is calculated on financial assets as follows:

1. Cash and bank deposits: 2.5% of the total value.
2. Shares and investment shares: 2.5% of the total value.
3. Real estate and lands: 2.5% of the total value.
4. Gold, silver and jewellery: 2.5% of the total value.
5. Shares in investment funds: 2.5% of the total value.

It should be noted that Zakat is calculated on the financial assets that you own for a full year. Zakat is paid to the poor and needy through approved charitable institutions.

Zakat calculation in Egypt 2023

The calculation of zakat in Egypt is different from the zakat calculation in other countries, as the assets on which zakat is calculated differ as well as the percentage of zakat.

In Egypt, zakat is calculated on the following assets:

1. Cash and bank deposits.
2. investments in the stock exchange.
3. Real estate and lands.
4. Contracts and securities.

The Zakat rate in Egypt is 2.5%, and it is calculated on the net value of the assets mentioned above, after excluding debts and other liabilities.

Muslims in Egypt can pay zakat to government-approved charities and charities, or to trusted religious associations. Zakat can also be paid through licensed banks and financial institutions.

Muslims in Egypt must pay zakat once a year, and they must have acquired a set amount of assets before they are obligated to pay zakat.

How to calculate zakat in Sudan 2023

Zakat is calculated in Sudan in accordance with Sharia provisions and state regulations, where saved and invested funds are subject to zakat at a rate of 2.5%.

Zakat is administered in Sudan by the Sudanese Zakat Authority, which is affiliated with the Ministry of Religious Affairs, Endowments and Islamic Guidance.

The following are general steps for calculating zakat in Sudan:

Determine the value of the money that is subject to zakat, which is the money that exceeds the specified minimum financial quorum, which is equivalent to the value of 85 grams of gold.

• Calculating the value of the financial quorum by converting it into the local currency (Sudanese pound) and determining the price of gold used in the calculation.
• Zakat calculation at 2.5% of the value of funds that exceed the financial quorum.
• Pay zakat to the Sudanese Zakat Authority.

Individuals, companies and institutions can inquire about the details of zakat calculation and how to submit it by contacting the authority or visiting its website.

Corporate zakat calculation

Zakat is calculated for companies based on the profits achieved by the company during the fiscal year that ends on December 31 of each year, at a rate of 2.5% on the remaining balance after deducting debts,

administrative expenses, and other work-related expenses.

The process of calculating zakat is as follows:

1. Calculation of net profits for the fiscal year: The net profits for the fiscal year are calculated after deducting all administrative and other expenses related to work and taxes.
2. Remaining balance calculation: The remaining balance is calculated after deducting all debts and financial obligations of the company.
3. Zakat Calculation: Zakat is calculated by multiplying the remaining balance by 2.5%.
4. Payment of Zakat: Zakat is paid to the competent authorities in accordance with the instructions specified in the country of the company.

Companies must submit a zakat declaration and pay zakat on the specified date in accordance with the specific instructions in the country of the company.

What are the methods of calculating zakat?

It can be calculated after the nisab is met and once the legal year on that wealth has passed. There are several ways to calculate zakat, including:

• Zakat calculation at 2.5%: Zakat can be calculated by calculating 2.5% of the total wealth resulting from monetary, commercial, real estate, investment and other properties that achieve the quorum and the legal year is assigned to it.
• Zakat calculation by weight: Zakat can be calculated by weight in case the wealth is material such as grain, gold and silver, and the nisab and percentage of zakat due are determined for each item.
• Calculating Zakat by size: Zakat can be calculated by size in the event that the wealth is such as livestock and pets, and the nisab and the percentage of Zakat due for each item are determined.
• Calculating Zakat by Estimation: Sometimes, it is difficult to calculate Zakat by weight or volume, and in such cases, Zakat can be calculated by estimate according to the fair value of the wealth.

Muslims who need to calculate zakat must check the provisions of Islamic law and the local legislation in force in their countries to determine the appropriate method for calculating zakat and ensure that it is paid on time.

In this article, we will explain in this article the calculation of zakat in Saudi Arabia 1444 AH, some of the methods that many people are looking for, which are:

First: the equation for calculating zakat

The percentage of zakat required to be calculated varies according to the asset on which zakat is paid, but in general the following percentage can be used:

• Funds: 2.5% of the value of funds paid for a full year.
• Trade: 2.5% of the net profit achieved in the previous fiscal year.
• Animals: The percentage varies according to the type and number of animals, but in general it ranges between 2.5% and 20% of the value of the animals.

Muslims who possess the above-mentioned assets must calculate the zakat that they must pay and pay it on time.

Second: Zakat calculation online

You can use a range of tools and websites to calculate zakat online, including:

1. Zakat Calculator Website: It is a site that helps you calculate Zakat accurately and easily, as it asks you to enter the total value of money and profits, and the site calculates the amount of Zakat based on the required percentage.
2. Smart phone applications: There are many free applications that help you easily calculate zakat, such as the “Zakat Calculator” application and the “My Account” application, which allow you to enter values and calculate the exact amount of zakat.
3. Charitable association websites: Some charitable associations provide the service of calculating zakat through their websites. This service allows users to calculate and donate zakat directly through the website.
4. Some banks: Some Islamic banks provide the service of calculating zakat through their websites, where customers can enter values and calculate the zakat amount easily and conveniently.

Third: The method of calculating the estimated zakat

The following steps can be followed to calculate the estimated zakat:

1. Determine the value of monetary assets: Collect the value of the cash you own, whether it is in the bank or at home, including foreign currency.
2. Determine the value of investment assets: add up the value of stocks, bonds, investment funds, real estate, vehicles, jewelry and other valuables that you own.
3. Exclude Debt: Calculate the value of your debts, including loans and other financial receivables, and exclude them from the total value of assets.
4. Net Worth Calculation: Add up the cash assets and investment assets, then exclude the total value of debt. This is the net asset value.
5. Calculating the Zakat Value: Multiply the net asset value by 2.5%, this is the estimated amount that must be paid as Zakat.

Note: You must ensure that the value used in the calculations is the value of the assets that you have owned for a full year and that it is more than the minimum prescribed amount for the payment of Zakat.

You can get a free consultation from our office, CFOONLINE , the authorized financial office in Saudi Arabia, to obtain a qualified accountant consultation according to your financial situation.

Fourth: Zakat calculation program

Various zakat calculation programs can be obtained by searching in application stores on smartphones or on the Internet.

The programs usually depend on entering specific data such as the value of assets, debts and profits, and these data are used to calculate the amount of zakat owed by you.

However, it should be noted that zakat calculation programs depend on specific details about assets, debts, and profits, and these details must be validated to ensure a correct zakat calculation.

It is also advised to consult with a qualified financial advisor to obtain comprehensive financial advice before making any decisions regarding zakat.

We at the CFOONLINE office provide appropriate advice according to the financial situation through experienced accountants who specialize in zakat.

Fifth: Zakat calculation form

The Zakat calculation model differs according to the types of assets and properties on which Zakat is calculated. However, usually, zakat is calculated on the following assets:

1. Money: Zakat must be paid on any money that reaches the nisab, which is equivalent to 85 grams of gold. The zakat rate imposed on money is 2.5%.
2. Gold and Silver: Zakat must be paid on gold and silver if their quantity reaches the Nisab, which is equivalent to 85 grams of gold. The zakat rate imposed on gold and silver is 2.5%.
3. Trade: Zakat must be paid on the capital invested in trade, if the capital reaches the nisab, which is equivalent to 85 grams of gold. The zakat rate imposed on the capital invested in the trade is 2.5%.
4. Lands: Zakat must be paid on lands that are owned for investment purposes, if their value reaches the nisab, which is equivalent to 85 grams of gold. The zakat rate imposed on land owned for investment purposes is 2.5%.

Zakat is calculated by multiplying the value of the asset by the zakat percentage, i.e. 2.5%, and this is the amount that must be paid as zakat on that asset.

One of the most common questions about zakat

In this article, we have collected the most common questions for calculating zakat in Saudi Arabia 1444 AH, which are:

• How is zakat calculated?

The percentage of zakat on cash money is a quarter of a tenth, which is equivalent to 2.5%, or what is equivalent to 25 per thousand, or what is equivalent to 250 per ten thousand, and so on.

• How is zakat calculated?

It is calculated at a certain percentage on the wealth that a person owns, and the percentage of zakat is set at 2.5% of the total value of wealth.

• How is one year calculated in zakat?

One year of zakat is calculated when a full Hijri year has passed since the person owned the missing funds (i.e. the funds for which he has to pay zakat).

Therefore, zakat is due on any money a person has for a full year, at a rate of 2.5% of its value.

• How is zakat calculated on gold?

Zakat on gold is calculated based on the weight of the gold and the current monetary value of the gold. Zakat on gold is an Islamic obligation for every Muslim who owns more than the specified amount of gold.

The zakat on gold is calculated at 2.5% of the value of the gold. The value of gold can be calculated by knowing the current price of gold in the market, which is updated daily.

Thus, the zakat on gold can be calculated by performing the following calculation:

The value of gold zakat = (weight of gold x current price of gold x 2.5%)

For example: If the weight of gold that a person owns is 100 grams, and the current price of gold is 200 riyals per gram, then the value of gold zakat will be:

(100 grams x 200 riyals/gram x 2.5%) = 500 riyals

This is the value of the gold zakat that you must pay. The zakat on gold must be paid once a year, and it can be paid at the end of the Hijri year.

• How is zakat calculated on the money saved from the salary?

Zakat on money saved from salary is calculated at 2.5% on money saved for a full year.

The money saved is calculated by adding all the savings that exceed the nisab limit of zakat, which is equivalent to 85 grams of gold or its equivalent in value in the local currency.

The zakat amount due on the savings can be calculated by multiplying the total value of the savings by the zakat rate of 2.5%, and the amount due is paid to the poor, the needy, and those who are eligible for zakat.

For example, if you had $20,000 in savings for a full year, your zakat amount would be $500 (20,000 x 2.5%). Therefore, $500 must be paid as zakat on the savings at the end of the zakat year.

We conclude our article Zakat Calculation in Saudi Arabia 1444 AH. It can be said that the Zakat calculation in Saudi Arabia is an important matter for every person who owns certain financial assets,

and they must determine the required percentage and conduct calculations regularly to ensure compliance with the required conditions.

Individuals and companies can also get help by contacting our CFOONLINE office to get the right guidance and assistance in preparing the Zakat calculation in a correct and accurate way.

The most important sources:

zatca.gov.sa

laws.boe.gov.sa

ar.wikipedia.org