Sole proprietor Zakat
I am a Saudi with a small shop CR. Do I file Zakat?
The situation
Saudi individuals with commercial activity under a CR are subject to Zakat on the business. The base is worked out from the business's year-end balances.
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
Keep simple books showing cash, stock, receivables, payables and fixed assets at year end, because the Zakat base uses year-end balances. File within 120 days of the year end. A Zakat certificate is often needed to renew government contracts or apply for some licences.
What to do
- Keep books.
- File yearly.
- Pay.
We can do this for youAnnual Zakat return and Zakat certificate for Saudi and GCC-owned companies: SAR 6,500