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Amendments to zakat regulations

Amendments to the implementing regulations for collecting zakat issued pursuant to Ministerial Resolution No. (58705) dated 09/21/1444 AH were approved. Here are the most notable amendments :

Adding two sub-paragraphs to Paragraph (1) of Article Five regarding “Characteristics of Net Fixed Assets” and shall be as follows:

e) Employee housing owned by the zakat payer.

f) He benefits from the details through employee housing support programs, if their contracts stipulate that the financing was through a Qard-hasan, or a deferred sale, without the company being entitled to any financial profits, or fees in excess of the original financing.

Adding two paragraphs to Article Six, “Controls of deduction and addition to the zakat base,” and shall be as follows:

(7) With regard to employee support programs, The price of the housing unit borne by the employee must not exceed its actual cost to the zakat payer, and the employee must not bear any additional amounts for the loan, and this includes cases where the contract is terminated before completing its term.

(8 For Zakat purposes, the zakat payer may treat the sukuk and bonds issued by him as a capital, without considering their classification in his financial statements, and in this case such sukuk and bonds shall be deducted from the zakat base of investors therein if they are for non-trading, and the issuing zakat payer may not reverse this transaction during the maturity period of the sukuk and bonds.

Adding a paragraph to Article Eight regarding “Adjustment to the activity with deductible expenses” and shall be as follows::

8/ Returns on debts incurred by the zakat payer for his employees in employee housing support programs.

Amend paragraph (3) of Article Twenty-Five on "Objection and Appeal Procedures" and shall be as follows:

For the objection to be accepted from a formal standpoint, The zakat payer shall pay at least 10% of the value of the Zakat amounts for the disputed items and not more than 25% thereof or provide a financial guarantee thereof, and ZATCA may set the regulating controls.

The text of paragraph (3) in the previous regulations:

-For the objection to be accepted from a formal standpoint The zakat payer shall pay part of the amounts due on the objected items during the statutory period of the objection, not less than (10%) of the value of the link and not more than (25%) of its value, or provide a financial guarantee of not less than (50%) of the value of Zakat assessment, and the Authority may set the zakat assessment

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