Zakat in Saudi Arabia: What Businesses Need to Know
Zakat vs. Corporate Tax
Ownership structure determines which regime applies to which portion of a company: Saudi/GCC-owned shares are generally subject to Zakat, while non-GCC foreign-owned shares are generally subject to Corporate Tax — mixed-ownership companies apportion accordingly.
How the Zakat base is calculated
The Zakat base broadly reflects a company's equity and reserves, adjusted for specific ZATCA rules — accurate, current financial statements are essential to getting this calculation right.
Getting compliant
Businesses should confirm their ownership classification with ZATCA and maintain financial statements structured to support an accurate Zakat/tax apportionment each year.
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