Investment in subsidiary and Zakat
We own shares in another Saudi company. Deductible?
The situation
Investments in companies subject to Zakat and in funds may be deductible under conditions in the 2024 regulation.
The law
- Zakat Implementing Regulation, Ministerial Resolution 1007 (29 February 2024): Applies to financial years starting on or after 1 January 2024; 2.5 percent of the Zakat base
What it means for you
The deduction avoids paying Zakat twice on the same wealth. Keep proof that the investee company filed its own Zakat return, such as its Zakat certificate. Investments in companies not subject to Zakat and in funds follow separate conditions, so classify each holding before filing.
What to do
- Collect investee filings.
- Apply conditions.
- Document.
We can do this for youAnnual Zakat return and Zakat certificate for Saudi and GCC-owned companies: SAR 6,500