Zakat Calculation & Filing Support in Saudi Arabia
Your Zakat base calculated from year-end figures and the return prepared well inside ZATCA's 120-day window.
Zakat Services overview
Companies owned by Saudi and GCC nationals pay Zakat on their Zakat base, at 2.5% for a Hijri year and by the actual number of days for a Gregorian year. Where a company also has foreign shareholders, their share of profit pays 20% income tax instead, so one return can need both calculations. The return and the payment are due within 120 days of the year end.
Under the Zakat regulations issued in 2024, which apply to years starting on or after 1 January 2024, the Zakat base is built from your financial statements: sources of funding such as equity and long-term loans are added, and long-term assets such as fixed assets and qualifying investments are deducted. The result depends on how cleanly your balance sheet is classified and how well each deduction is supported.
We build the Zakat base through the year rather than in April. We classify the balance sheet the way the regulations read it, collect the evidence for each deduction, split Saudi and GCC ownership from foreign ownership, and prepare the return with working papers your auditor and ZATCA can follow. Your company submits it on the ZATCA portal, or your Saudi tax adviser files it.
Prefer to talk it through first? Call +971 54 542 4854 or email info@hof-partners.com.
What your Zakat year includes
- Ownership split
- Saudi, GCC and foreign shareholdings reviewed, so Zakat and income tax are each worked out on the right share.
- Zakat base calculation
- What's added and taken off worked through from your financial statements, with each item traced to the books.
- Supporting schedules
- Fixed assets, investments, long-term loans and provisions listed, with the evidence ZATCA expects for each one.
- Zakat and tax calculation
- Zakat at 2.5%, adjusted for a normal calendar year, alongside 20% income tax on any foreign share of profit.
- Return preparation
- The Zakat return completed and checked against your audited statements, ready for you to submit within 120 days.
- Help with ZATCA questions
- Schedules and explanations prepared for you or your adviser when ZATCA asks about a return you've filed.
Your Zakat is calculated on evidence, not on last year's estimate.
Questions about Zakat Services
Companies owned by Saudi or GCC nationals pay Zakat on their share of the Zakat base. Foreign shareholders' share of profit pays 20% income tax instead. A company with mixed ownership files one return that covers both.
Zakat is 2.5% of the Zakat base for a Hijri year. Most companies keep a Gregorian year, so the rate is applied by the actual number of days, which comes to slightly more than 2.5%. The base itself is built from your financial statements under the Zakat regulations issued in 2024.
Within 120 days of your year end, with payment due at the same time. For a 31 December year end that is 30 April, or 29 April in a leap year. If the last day is an official holiday, the deadline moves to the next working day.
No. We prepare the return and working papers and send them to you for approval. Your company submits it on the ZATCA portal, or your Saudi tax adviser files it. We do not hold Saudi tax agent or SOCPA status.
We can rebuild the Zakat base from your records, compare it with ZATCA's assessment and prepare schedules that explain each difference. Any objection or appeal is submitted by your company or your Saudi tax adviser.
ZATCA can charge late fines, and a company without a filed return can't get its Zakat certificate, which many Saudi companies need for government work and bank dealings. That's why we start the Zakat work months before the deadline, not weeks.
Yes, from 2024. Zakat payers with related-party transactions must file a disclosure form for those transactions with their Zakat return, signed off by the company. We prepare the form from your books alongside the return.
More ways we can help
All services- ZATCA E-InvoicingYour invoice data, VAT treatments and workflows ready for Fatoora integration before your wave date arrives.
- VAT ServicesRegistration assessed against the SAR 375,000 threshold, then every VAT return prepared from reconciled books.
- Qawaem FilingYear-end financial statements prepared, mapped to XBRL and ready to upload to Qawaem within six months.
- Payroll ServicesMonthly payroll prepared with GOSI contributions, a Mudad wage file and end-of-service provisions that add up.
Talk to us about your Zakat return
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