Kuwait’s Munshaat set to pay SAR 411 mln in zakat levy to Saudi GAZT

Kuwait-listed Munshaat Real Estate Projects Co.’s board of directors approved settlement of SAR 411.45 million in zakat claims to Saudi Arabia’s General Authority of Zakat and Tax (GAZT), the company said in a statement to Boursa Kuwait.

The settlement is related to the company’s operations in the Kingdom for the period from 2003 to 2017. The parent company and its wholly-owned subsidiary, Munshaat for Projects and Contracting Co. (KSA) will be also discharged from zakat claims during the same period.

Meanwhile, Munshaat board applied to the Kuwaiti Capital Markets Authority and Boursa Kuwait to continue a trading halt on the stock, until it determines the related financial impact on the company within three weeks.

The company allocated nearly SAR 363 million in provisions for the claims until Dec. 31, 2017, the statement added.

In 2016, GAZT ordered Munshaat Real Estate to pay SAR 1.9 billion in zakat levy for the profit realized in previous years, and for its joint liability for capital taxes in some divestments, Argaam earlier reported.

Munshaat’s adviser has recently recommended accepting GAZT offer to settle the required claims.