The Minister of Finance issued Resolution No. (137) dated 02/06/1445 AH amending and adding some subparagraphs to the provisions of the rules for calculating zakat on financing activities issued by Ministerial Resolution No. (2215) dated 07/07/1440 AH, which included the following:
- Amending the definition of “financing activities” contained in Clause (First), to include the direct and indirect financing funds licensed by the Capital Market Authority, after it was limited only to banks and financing companies licensed by the Central Bank of Saudi Arabia.
- Amending the fourth clause, which included the sources of funds subject to zakat for financing activities, by adding paragraphs (4) and (5), as paragraph (4) indicated that the net assets belonging to unit owners in direct and indirect financing funds are from the sources of funds subject to the collection of zakat, Paragraph (5) excludes short-term obligations - which are due within less than one year - from the sources of funds subject to Zakat collection, for direct and indirect financing funds.
- Amending Paragraph (1) of Clause (Sixth), which includes adopting the values appearing in the audited financial statements at the end of the zakat year, net, when calculating the zakat base, with the exception of equity and the increase in capital during the zakat year from a source outside the establishment This exception does not apply to financing funds Direct and indirect.
This decision shall be effective from the date of its issuance which was 02/06/1445 AH. To view the decision: (Click here)
It is also worth mentioning that His Excellency had previously issued the “Rules for Collecting Zakat from Investors in Investment Funds” on 05/09/1444 AH, and these rules generally included that the fund should only register with ZATCA and submit an information declaration while investors calculate and pay their zakat share of the fund.
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