The state-owned companies shall be subject to Zakat collection as per the following controls:
1. The company has a commercial register
2. The company activities may be assigned to the private sector, based on the company’s articles of association, memorandum of association or any other legal document.
State-owned firms in the fiscal year during which the following controls are carried out are exempt from the zakat obligation stipulated in (I) of this Article.
1. If the company’s investments are outside the Kingdom
2. If the company budget is financed by the treasury and the following conditions apply:
- The company shall carry out services to support the government entities to perform their works,
- The majority of its customers shall be from government entities
- Its objective shall not be the pursuit of a commercial profit, and
- Its sales to the private sector shall not exceed (10%) of the total sales.
The enterprise subject to the controls outlined in Article (II) shall submit an annual request to be exempt from zakat based on the following criteria:
1. The company shall make a request to the Authority using the form designed for this purpose, along with the documentation requested by the Authority. The request must include the company's details and evidence proving the presence of exemption controls.
2. The request shall be made within the timeframe specified in Article 17 of the Executive Regulations for the Collection of Zakat, issued by Ministerial Resolution No. 2216 dated 07/07/1440 H (14/03/2013 G). If the company submits the request after the statutory deadline has expired, the Authority may accept the request if the company cites justifiable reasons for the delay.
3. The company shall acquire a decision about its exemption from zakat after a review of its request and the performance of the controls specified above.
4. If the company is wholly controlled by a government entity that owns many companies, each affiliate must submit a request for exemption to the Authority separately.
This Resolution shall apply to the fiscal years which begin in or after 01/01/2023 G.
This Resolution shall be communicated to the executing bodies.
