Zakat Base Calculation Saudi Arabia
Precise ZATCA-aligned Zakat base computation — working capital analysis, IFRS reconciliation, deduction optimisation, and shareholder allocation for Saudi businesses.
Intelli Solutions provides certified Zakat base calculations that are fully reconciled to your IFRS financial statements, aligned with ZATCA's latest assessment methodology, and optimised to claim every eligible deduction. Our calculations are prepared to withstand ZATCA scrutiny — including detailed workpapers and documentation for all positions taken.
Components of the Zakat Base
Zakatable Assets (Added)
- Cash and bank balances (end of year)
- Trade receivables (net of provision — conditions apply)
- Inventory / stock in trade (at cost)
- Advances to suppliers
- Short-term investments and marketable securities
- Loans to shareholders (in specific circumstances)
- Retained earnings / accumulated reserves
- Opening equity (adjusted for prior-year Zakat paid)
Eligible Deductions (Subtracted)
- Net book value of fixed assets (PP&E)
- Long-term investments in non-current subsidiaries
- Losses carried forward from prior years
- Statutory and legal reserves
- Long-term deferred expenses
- Trade payables (end of year)
- Bank loans and financing (long-term portion)
- Zakat paid in the year
Common ZATCA dispute points: ZATCA frequently disputes the deductibility of: intercompany loans (both ways), provisions for doubtful debts, investments in foreign subsidiaries, negative equity items, and the treatment of Islamic finance instruments. We prepare technical positions with supporting documentation for each disputed item.
Zakat Base Calculation Saudi Arabia — Key Facts
Frequently Asked Questions — Zakat Base Calculation Saudi Arabia
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