ZATCA Certified · SOCPA Approved · 15+ Years Experience

Zakat Consultant Saudi Arabia

Certified Zakat calculation, filing, and ZATCA compliance services for Saudi businesses and mixed-ownership companies.

Zakat consultant reviewing financial documents in Riyadh Saudi Arabia
ZATCA Zakat Services
Zakat is one of the Five Pillars of Islam and a legal obligation for every eligible Muslim individual and business in Saudi Arabia. For companies, Zakat is administered by ZATCA (Zakat, Tax and Customs Authority) and must be calculated, filed, and paid within four months of the financial year-end. Failure to comply results in substantial penalties, blocked government services, and potential audit escalation.

Intelli Solutions provides certified Zakat consulting services in Saudi Arabia — from determining who owes Zakat and calculating the Zakat base correctly, to preparing and filing the annual Zakat return with ZATCA, responding to ZATCA queries, and resolving assessments or penalties. Our consultants hold ZATCA-recognized qualifications and have handled hundreds of Zakat filings across manufacturing, real estate, trading, and professional services companies.

Who Must Pay Zakat in Saudi Arabia?

Zakat liability in Saudi Arabia applies to:

  • Saudi national shareholders on their ownership share in Saudi companies
  • GCC national shareholders (citizens of UAE, Kuwait, Bahrain, Qatar, Oman) on their proportionate ownership
  • Saudi sole proprietorships and partnerships fully owned by Saudi nationals

Foreign shareholders in the same company pay Corporate Income Tax (CIT) at 20% on their profit share — not Zakat. Companies with mixed Saudi and foreign ownership therefore face both Zakat and CIT obligations, making accurate shareholder allocation essential.

The annual Zakat return must be filed with ZATCA within 120 days of the financial year-end. Extensions of 60 days can be requested before the deadline. Late filing attracts a penalty of 5%–25% of the Zakat due.

How Is the Zakat Base Calculated?

The Zakat base is broadly calculated as:

1

Add: Zakatable assets

Working capital, trade inventory, cash and bank balances, receivables (net of provision), short-term investments, advances to suppliers, and certain other liquid assets.

2

Deduct: Eligible deductions

Fixed assets (net book value), long-term investments, losses carried forward, and certain statutory reserves are excluded from the Zakat base.

3

Apply: Zakat rate

The Zakat rate is 2.5% on a solar year basis, or approximately 2.577% when adjusted for the lunar Hijri year. ZATCA now generally accepts either basis with consistent application.

4

Allocate: Saudi ownership portion

In mixed-ownership companies, the Zakat base is multiplied by the Saudi/GCC shareholder percentage. The remainder is subject to CIT at 20%.

In practice, ZATCA frequently reassesses submitted returns and issues amended assessments. Our team includes former ZATCA-trained consultants who know how assessments are made — and how to challenge incorrect ones through the Appeal Committee and Tax Dispute Resolution Committee.

Our Zakat Consulting Services

Zakat Base Calculation

Comprehensive annual Zakat base computation aligned with ZATCA's assessment methodology and current regulations.

ZATCA Return Filing

Preparation and submission of the annual Zakat return through ZATCA's electronic portal, with complete supporting documentation.

ZATCA Assessment Review

Review of ZATCA assessments for errors, overcalculations, or misapplication of regulations — with written objection preparation.

Penalty Resolution

Negotiation and resolution of Zakat penalties, back-assessments, and voluntary disclosure submissions to reduce exposure.

Mixed-Ownership Structuring

Allocation of Zakat vs. CIT liabilities in Saudi–foreign joint ventures and mixed-ownership structures for tax efficiency.

Zakat Health Check

Annual review of Zakat positions, identification of over- or under-payment, and proactive correction before ZATCA scrutiny.

Zakat Regulations and Recent ZATCA Updates

Saudi Zakat regulations have evolved significantly since ZATCA (formerly GAZT) began electronic filing. Key developments affecting 2025–2026 Zakat filings include:

  • ZATCA Circular on Zakat Base: Updated guidance on the treatment of intercompany loans, shareholder loans, and provisions in Zakat base calculations
  • Voluntary Disclosure Mechanism: ZATCA introduced a structured VDP allowing companies to correct prior-year Zakat underpayments with reduced penalties (up to 100% waiver in eligible cases)
  • E-Invoicing Integration: Zakat-registered businesses are subject to Fatoorah e-invoicing obligations — Phase 2 integration timelines apply equally to Zakat-only entities
  • Transfer Pricing Applicability: Where a Saudi company has related-party transactions, ZATCA may apply transfer pricing adjustments to the Zakat base — mandatory TP documentation applies from SAR 100M+ threshold
  • Group Zakat Filing: Saudi business groups under common ownership may elect consolidated Zakat filing — eligibility and mechanics require careful structuring

Our team monitors every ZATCA circular and implements required changes to your Zakat position proactively — never reactively.

By the numbers

Zakat Consultant Saudi Arabia — Key Facts

2.577%
Zakat rate (lunar year)
120
Days to file after year-end
5 years
ZATCA audit window
500+
Zakat returns filed
FAQ

Frequently Asked Questions — Zakat Consultant Saudi Arabia

Zakat applies to Saudi and GCC national shareholders on their proportionate share of a company's Zakat base, at 2.5–2.577% annually. Corporate Income Tax (CIT) at 20% applies to the profits attributable to foreign shareholders. In a mixed-ownership company, both apply simultaneously — Zakat on the Saudi portion and CIT on the foreign portion.
The Zakat return must be filed with ZATCA within 120 days (4 months) of the company's financial year-end. For most companies with a December 31 year-end, the deadline falls in late April. A 60-day extension can be requested before the original deadline — Intelli Solutions handles all extension requests as part of our Zakat filing service.
Yes. ZATCA has the authority to audit Zakat returns for up to 5 years from the filing date. Audits typically involve requests for financial statements, ledger details, fixed asset schedules, and shareholder records. Our Zakat audit support service manages all ZATCA correspondence and documentation on your behalf.
ZATCA's Voluntary Disclosure Programme (VDP) allows businesses to proactively correct past underpayments with significantly reduced penalties — in some cases a full waiver of the late payment penalty. We strongly recommend a Zakat health check to identify any prior-year exposure before ZATCA initiates its own audit.
Saudi-owned free zone companies (such as those in KAEC or giga-project zones) are generally subject to Zakat on their Saudi-owned portion under ZATCA's jurisdiction, unless specific exemptions apply. The rules differ for companies in DIFC-equivalent zones — we assess each structure individually.

Ready to File Your Zakat Return?

Our ZATCA-certified consultants handle everything — calculation, filing, and ZATCA correspondence. Free initial consultation.

SOCPA Approved ZATCA Certified Free Consultation Est. 2010