The Zakat, Tax, and Customs Authority rules regarding the exemption of taxpayers “owned by a waqf” to Zakat Collection, which include all provisions and regulations related to the exemption from Zakat collection for taxpayers owned by a waqf.
The Authority stated in a press release that the rules apply to taxpayers subject to the Executive Regulations of Zakat Collection, who is wholly owned (directly or indirectly) by one or more waqfs, provided that the waqf was established in the Kingdom and documented in accordance with legal procedures, in addition to meeting the criteria stipulated in the rules.
It clarified that the rules included a number of controls and provisions, most notably that the taxpayer must submit—annually—a request for exemption for the collection of zakat in accordance with the form prepared by the Authority, accompanied by the required documents, provided that the application is submitted within the statutory period specified in Article (17) of the Executive Regulations for the collection of Zakat.
The Authority noted that the rules apply to fiscal years beginning on or after January 1, 2023, and may—upon the taxpayer’s request—be applied to fiscal years to which they apply the Executive Regulations for Zakat Collection issued by Ministerial Decision No. (2216) dated 7 Rajab 1440 AH, and for which no final decision on compliance has been issued by the Authority.
The the Zakat, Tax, and Customs Authority all taxpayers and interested parties to review the rules regarding the exemption of taxpayers whose property is “owned by a waqf” to Zakat collection by visiting its website (zatca.gov.sa), and to contact the Authority for further information via the unified call center number (19993), which operates 24 hours a day, seven days a week, or via the “Ask Zakat, Tax, and Customs” Twitter account (@Zatca_Care), or by email ([email protected]), or through the live chat feature on the Authority’s website.
Exemptions from Zakat Collection
