How the Zakat Base Is Calculated
The approximate zakat base is calculated based on shareholders' equity and net profit, with certain fixed assets and long-term investments excluded from this base under general applicable principles.
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Zakat is calculated only on the Saudi and Gulf shareholders' portion, while shareholders of other nationalities are subject to income tax instead of zakat.
Regulatory Basis
This calculator draws on the general basis of the zakat system applied to companies in Saudi Arabia.
Limits of Using This Calculator
This calculator's result is a general estimate for planning, not a final calculation to rely on in the official filing. The lawyers recommend reviewing the precise calculation with your accountant or with the lawyers directly.
Who Benefits From This Calculator
Companies wanting an initial estimate of their zakat liability before preparing the official filing.
Companies with mixed ownership wanting to understand how the base is distributed between zakat and tax.
Some companies use the calculator's result directly in their official filing without independent review, while some activities carry specific exceptions or adjustments to the general zakat base not reflected in a general estimation calculator. The lawyers recommend reviewing the result with the company's accountant first, then confirming it with the lawyers if there's a regulatory matter needing further clarification.
Related Services
For a full review of your zakat and tax position, this connects with the zakat and tax service.
For companies with mixed ownership, this connects with the foreign investment and MISA licensing service.
Common Questions
Is this calculator a substitute for the official filing?
No, it's a planning estimation tool only, and the official filing with the Zakat, Tax and Customs Authority remains the authoritative reference.
Why does the result differ based on foreign ownership ratio?
Because the foreign shareholders' portion is subject to income tax instead of zakat, which changes the company's actual zakat base.