The new Zakat Regulation amended by ministerial decree will increase the clarity of the method of calculating zakat for taxpayers holding commercial bills and for those who do not carry commercial bills
The General Authority of Zakat and Tax (GAZT) has confirmed that the new zakat regulations, which are to be implemented in January 2020, will be applied to Saudi and Gulf investors residing in Saudi Arabia and not to individuals.
GAZT confirmed that it would apply the income tax on foreign companies and entities, Saudi Gazette reports.
The new Zakat Regulation amended by ministerial decree will increase the clarity of the method of calculating zakat for taxpayers holding commercial bills, and for those who do not carry commercial bills.
In addition, the new regulation will further clarify the procedures related to collecting the zakat, improve drafting, standardization, and definition of terms used in the regulation.
The amended regulations include enhancing the collection procedures to improve transparency and efficiency, which would reflect on raising investors' trust and attracting more investments.
A positive impact is to be seen on settling zakat claims for under-construction property, which will support the real estate sector.
The amendments clarify the zakat liability on insurance activities, given its unique nature and objectives.
The zakat collection regulations also aim to improve the zakat account of financing activities and reduce any related disputes, the statement added.
The authority stresses the necessity of obtaining any information about zakat or taxes through its official channels in social media accounts and the official website.