Zakat Collection Law In KSA

Introduction: Zakat, Tax, and the ZATCA

The Zakat, Tax and Customs Authority (ZATCA) is the regulatory body responsible for tax collection and assessment in Saudi Arabia. This includes the collection of Zakat, a religious tax, as well as Value Added Tax (VAT). In cases of disputes between ZATCA and taxpayers, these issues are addressed by the Dispute Resolution Committee (DRC). ZATCA collects Zakat annually from individuals and businesses in accordance with Sharia law, aiming to contribute to the economic advancement of the Kingdom. For companies, Zakat is calculated at a rate of 2.5% based on their zakat base. As the issuer of the Zakat Collection Law in KSA, ZATCA plays a pivotal role in overseeing and managing the collection of Zakat and other tax-related matters in Saudi Arabia. The authority ensures compliance with zakat regulations and effectively administers the collection process.