Fixed assets acquired for use in the Zakat payer's activity at the carrying amount stated in the financial statements. The Zakat Payer's Basis of Zakat shall not be less than the Net Profit adjusted for Zakat purposes in accordance with the provisions of this Regulation. When the maturity of the debt(s) or loan of a Zakat payer from other sources is (354) days or more and covers more than two Zakat years, the amount of the debt or loan will be attributed to each Zakat year and are added to the Zakat base for each zakat year. years in proportion to the number of days in each Zakat year [during which the debt or loan remains payable].
AMENDMENT TO BUSINEES ACTIVITY RESULT
The opening and closing balances of the Zakat Payer's income and advances to the Zakat Payer are lower. The zakat payer reports written-off debts as income if these debts are recovered. The payment of school allowance by the payer of zakat to the children of employees of the entity must be explicitly stated in the employment contract or company regulations.
Expenses that the Zakat payer cannot prove by supporting documents or other evidence acceptable to the Authority. If the Zakat payer's import amount as stated in the Zakat Declaration is higher than the import amount stated in the Customs Bayan, the entire difference will be added to the net profit. Where the information available with the Authority conflicts with the information provided by the Zakat Payer, the Authority may consider the information available with it.
The Zakat Payer's information available with the Authority can be used for guidance in the calculation of zakat on the Zakat Payer on deemed basis. The first Zakat year of a Zakat payer calculated on the estimated basis begins in accordance with Article 13 of the Levy of Zakat Statute, unless otherwise proven by the Zakat payer that another date acceptable to The authority, is.
Zakat Calculation on Deemed Basis
The Authority, where Zakat Payer's contracts are found to be based on cost method plus a specific margin, may consider such margin stipulated in the contract except for related party contracts. Where the Authority will not be able to access recognized information that reflects the reality of the Zakat Payer and Zakat Payer's business activity, including. The Authority may set minimum and maximum limits for the components to be used in the assessment of the Zakat base of a Zakat payer, which is taken into account on an estimated basis, depending on the particular city, business season, events and any circumstances affecting the assessment.
The Authority may reallocate income and expenses for transactions between interrelated parties or such transactions with parties that may influence, directly or indirectly, the actions and decisions of Zakat Payer, or otherwise related parties of Zakat Payer, to reflect the income that would have been received. earned if the transactions had taken place with independent and unrelated parties. Zakat Payer failed to provide required documents, including financial statements, accounting books and records, in Arabic within the period specified in Article 17 of this Regulation. The information contained in Zakat Payer's commercial books and records does not reflect the reality of Zakat Payer's business activities.
Zakat Payer's accounting books and records are inconsistent with the forms prescribed by applicable rules, related statutes and regulations. Zakat Payer will not be able to prove the accuracy of the information reported in the statement in accordance with documents acceptable to the Authority.
Zakat Accounting Rules
Indirect ownership means that the subsidiaries are owned by a holding company in a certain percentage with the remaining percentages wholly owned by any other wholly owned subsidiary of the holding company. Zakat of a holding company and subsidiaries, jointly owned by others, will be calculated separately, subject to the treatment of intercompany debts (receivables) and investments in accordance with the provisions of this Regulation. The Zakat Payer, subject to the regulations of this Regulation, must be registered with the Authority before the end of the first fiscal year of the Zakat Payer.
A zakat payer who is not subject to these regulations shall also register with the authority. The payer of zakat shall submit a statement and annexes to it in Arabic and pay zakat on it in accordance with the forms and practices approved by the Authority no later than one hundred and twenty (120) days after the end of the zakat year. Without prejudice to the provisions of Article 10 of this Regulation, every payer of zakat in the Kingdom and in Arabic must keep accounting books and records necessary to accurately determine the basis for zakat.
Further, the Zakat Payer shall maintain the documents, information/explanatory notes confirming the accuracy of such accounting books and records. It is up to the Zakat Payer to verify the accuracy of the information reported in the statement.
Registration, Filing Examination and Assessment
The authority can examine and review the zakat statement and request the zakat payer to submit relevant explanations and required documents. In the event that the zakat payer fails to provide information within the above deadline, the authority may extend the permitted deadline or otherwise raise the assessment in accordance with available information and evidence. The field audit is documented with the minutes of the field audit, which are signed by duly authorized representatives of the authority and the zakat payer.
The employees of the Authority or the staff delegated to carry out a particular task under this Regulation may disclose the information of Zakat Payer where such disclosure is necessary for the Authority to carry out/execute the tasks to practice. Furthermore, without prejudice to the provisions of the article hereof, the employee of the Authority or personnel delegated by the Authority to carry out a particular assignment under this Regulation may disclose the information of Zakat Payer to any person in accordance with the written permission of Zakat Payer. Before filing an appeal against the Authority's decision, the Zakat payer must file an appeal with the Authority within sixty (60) days from the date the decision is announced.
The Authority will decide on the objection within ninety (90) days from the date on which it was submitted. The Authority's decision will become final where no objection is lodged with the Authority or the Dispute Resolution.
Objection and Appeal Procedures
Working rules for the settlement of tax disputes and appeals committees laid down in royal decree (no. M/113) dated are applicable to the audit's assessments/orders. If the objection is rejected by the Authority, or the above ninety (90) day period has expired without a decision, the claimant may file a claim with the Disputes Committee's decision within thirty (30) days after the date on which the claimant was notified on the authority's rejection or after ninety (90) days without any decision being made. To accept the objection in form, the Zakat payer must pay the amount due for the items that are not objected within the statutory period for objection.
In order to accept the objection in form, the Zakat payer must partially pay the amounts due in respect of the objects that are the subject of objection within the statutory period for objection by not less than 10% and not more than twenty-five percent (25%) of the assessed amount , or otherwise provide a financial guarantee of fifty percent (50%) of the assessed amount. Subject to paragraph (1) of this article, the Zakat payer may submit a request to the Authority's Conciliation Committee for settlement of the dispute at any time during the processing of the claim in accordance with the committee's working rules. The Zakat payer must pay the amounts due within sixty (60) days from the Authority's assessment date if no objection is raised within the statutory period.
However, if an objection is filed against the Authority's assessment and the objection is withdrawn, Zakat Payer will pay the amount within sixty (60) days from the first date of withdrawal or the date of the final decision on the resolution of the dispute, depending on which date is earlier.
Collection Procedures
A Zakat payer with final Zakat liability will be required to settle it within thirty (30) days from the date of reminder to pay. Write letters to the Saudi Central Bank (SAMA) and Capital Market Authority (CMA) and other competent authorities to block Zakat Payer's assets and funds within the limits of Zakat amount due and transfer them to the Authority's account when requested become Zakat payer will be allowed by the Authority to provide a list of the assets that the Zakat payer wishes to exclude from sale where the sale amount of other assets sufficiently covers the Zakat due.
However, the Zakat Payer's tools used in business activities, his belongings and personal furniture to a maximum of SR 300,000 (Saudi Riyals three hundred thousand) shall be excluded from seizure. Immediately upon receipt of the zakat due in full, the Authority shall advise the concerned government departments to cease all actions taken against the zakat payer. The Authority shall notify the Zakat payer of any action taken against it in accordance with the Article herein.
If the business has been stopped, the zakat payer must notify the authority within sixty days from the date of cessation, otherwise the zakat payer will be billed on the basis of the entire zakat year. The zakat payer is deemed to have ceased to operate due to liquidation as soon as liquidation procedures are initiated, in which case the zakat payer must notify the Authority that liquidation procedures have been initiated.
Closing Provisions
Correspondence and notifications addressed by the Authority to Zakat Payer shall be deemed to have produced legal effects if made through communication media approved by the Authority, including for example but not limited to the Authority's portal, SMS, email, registered post post or other medium approved by the Authority. Correspondence and notifications addressed by Zakat Payer to the Authority shall be deemed to have had legal effects if made through the Authority's portal or any other medium determined by the Authority, whereby it will be impossible to enter them through the Authority's portal to serve. The Authority may cooperate with government authorities in relation to any matters relating to the implementation of this Regulation.
All governments, semi-government departments and companies in which the state is a shareholder, as well as professional firms, should provide the Authority with the information it may require for the implementation of the rules in this regard.
