Finance Minister approves executive regulations for Zakat collection

Mohammed Al-Jadaan Saudi Minister of Finance

Saudi Minister of Finance Mohammed Al-Jadaan approved the executive regulations for Zakat collection (1445 AH edition), which clarifies all procedures related to Zakat collection and facilitates the process across various business sectors.

The new 128-article regulations offer detailed clarifications on many aspects, including more details to raise awareness of Zakat procedures, addressing challenges faced by the obligated parties.

The regulations cover all rules related to Zakat collection, including those issued through independent ministerial decisions, such as rules for calculating Zakat for taxpayers, Zakat for financing activities, and Zakat collection from investors in investment funds. This is in addition to exemptions from Zakat for properties owned by endowments and exemptions for charitable organizations and training units.

The key updates to the regulations are the development of a minimum Zakat base, setting a cap on the Zakat base to protect taxpayers from rising Zakat costs.

The regulations are applicable to fiscal years starting Jan. 1, 2024, and beyond, with declarations due in 2025, in accordance with the specified conditions and guidelines.