The Regulation aims to clarify the provisions for the collection of Zakat in the Kingdom, and to explain the rights and obligations of the taxpayer and the authority in this regard; in order to achieve the application of this religious duty and to enhance the level of compliance with it.

Subject to the provisions of the Regulation are:

• 1- The resident Saudi individual who conducts activities under a license in the Kingdom.

• 2- The sole proprietorship owned by a Saudi and established in the Kingdom, in accordance with the relevant laws and regulations in force in the Kingdom.

• 3- The company owned by a Saudi and established in the Kingdom, in accordance with the relevant laws and regulations in force in the Kingdom, and the share of the Saudi partner or shareholder in resident companies, as well as the shares of government bodies and institutions and similar entities.

• 4- The financing funds licensed by the Capital Market Authority.

• 5- The state-owned resident companies and the resident companies owned by the Public Investment Fund, in accordance with the controls set forth in the royal orders and relevant ministerial decisions.

• 6- The share of the non-Saudi shareholder in the resident companies listed in the Saudi financial market, excluding the shares of non-Saudi founders, in accordance with the company's articles of association or its founding contract or the relevant regulatory documents.

1- A natural person is considered a resident in the Kingdom during the Zakat year if any of the following two conditions are met:

• أ‌- He must have a permanent residence in the Kingdom and must reside in the Kingdom for a period of no less than (30) thirty days in the Zakat year, whether continuous or intermittent.

• ب‌- If he does not have a permanent residence in the Kingdom, and has resided in the Kingdom for a period of no less than (183) one hundred eighty-three days in the Zakat year, whether continuous or intermittent.

For the purposes of this paragraph; residence in the Kingdom for part of the day is considered a full day's residence, and a person's stay in the Kingdom for a day or part of it - while in transit between two points outside it - is not considered residence within the Kingdom.

2- A legal person is considered a resident in the Kingdom during the Zakat year if any of the following two conditions are met:

• أ‌- It must be established in accordance with the laws of the Kingdom.

• ب‌- Its main administrative headquarters must be in the Kingdom.