Zakat Certificate, Zakat Return and Objections in Saudi Arabia
For Saudi-owned companies and the Saudi share of mixed companies: we prepare and file the zakat return, keep your zakat certificate valid for government dealings, and handle ZATCA reviews and objections.
The short answer
Zakat is collected from Saudi-owned businesses and from the Saudi (and GCC) share of resident companies, at 2.5% of the zakat base for a Hijri year, pro-rated by days for any other financial year. The return and payment are due within 120 days after the year ends. A company with foreign partners also pays 20% income tax on the foreign share, and a business needs the final zakat certificate to complete government procedures and receive final dues.
Who this is for
- Saudi-owned companies and establishments with a licensed activity
- Companies with Saudi and foreign partners, which file both zakat and income tax
- Contractors and suppliers who need a valid zakat certificate for government work and final payments
- Businesses that received a zakat assessment or query from ZATCA
How we help
- 1.Preparing and filing the annual zakat return through ZATCA’s e-system
- 2.Zakat registration for new businesses in their first financial year
- 3.Keeping the zakat certificate valid and requesting the final certificate
- 4.Splitting zakat and income tax for companies with Saudi and foreign owners
- 5.Answering ZATCA queries, and preparing objections to zakat assessments
Key facts
Rate: 2.5% of the zakat base for a Hijri year, pro-rated by days for other financial years.
Source:Zakat IR Art. 15(1)-(2) [T02-0504]Register with ZATCA before the end of the first financial year.
Source:Zakat IR Art. 98 [T02-0514]Return and payment within 120 days of year end (30 April for a 31 December year end).
Source:Zakat IR Art. 102 [T02-0515]Saudi and foreign owners: zakat on the Saudi/GCC share, 20% income tax on the foreign share.
Source:Zakat IR Art. 6(1) [T02-0501]ZATCA may review a return for 5 years, or 10 years in the cases the regulations list.
Source:Zakat IR Art. 106 [T02-0518]Objection to a ZATCA decision: within 60 days of notification.
Source:GSTC Procedures (Royal Order 25711) Arts. 5-6 [T02-0703]Unpaid final zakat can block tenders, foreign recruitment and CR or licence renewal.
Source:Zakat IR Art. 125(2) (Royal Order 16145 of 1/4/1437H) [T02-0526]
Who pays zakat
Resident Saudis carrying on a licensed activity; sole establishments and companies set up in the Kingdom and owned by Saudis; the Saudi partner or shareholder share in resident companies; shares held by Saudi government bodies; CMA-licensed finance funds; and non-Saudi shares in listed resident companies (other than founders’ shares). For zakat, GCC nationals are treated like Saudis.
Source:Zakat IR (MD 1007/1445H) Art. 3 [T02-0500]A company with Saudi and foreign owners pays two levies: zakat on the Saudi/GCC-owned share and corporate income tax on the non-Saudi share, at 20% of the taxable base. Persons and shares subject to the Income Tax Law are outside the zakat regulations.
Source:Zakat IR Art. 6(1) [T02-0501]
Rate, registration and the 120-day deadline
Zakat is 2.5% of the zakat base for a Hijri year. Where the financial year is not a Hijri year, the rate is 2.5% divided by the days in the Hijri year, multiplied by the days in the financial year.
Source:Zakat IR Art. 15(1)-(2) [T02-0504]A zakat payer must register with ZATCA before the end of its first financial year, file a zakat return with supporting documents, answer ZATCA’s requests and pay the zakat due.
Source:Zakat IR Art. 98 [T02-0514]The return is filed and the zakat paid within 120 days after the end of the zakat year, through ZATCA’s e-system, by SADAD or another accepted method. If day 120 is an official holiday, the deadline moves to the next working day.
Source:Zakat IR Art. 102 [T02-0515]
Zakat certificates
ZATCA issues two certificates: a registration certificate in the first financial year, and a final certificate after the return is filed and the dues are paid. The final certificate lets the business complete government procedures and receive final dues. It is requested on the ZATCA portal once all liabilities are paid or an objection has been made.
Source:ZATCA Guideline for Frequently Asked Questions, Version One 2023, payment & certificates section Q2-Q3, PDF p.47 [T02-0950] official text ↗The registration certificate is valid from its issue date until 120 days after the end of the first financial year.
Source:ZATCA FAQ Guideline Version One 2023, registration section Q3, PDF p.18 (URL as T02-0950) [T02-0951]A payer with final unpaid zakat can be barred from government tenders, recruiting foreign workers, and issuing or renewing commercial registration, licences and work permits.
Source:Zakat IR Art. 125(2) (Royal Order 16145 of 1/4/1437H) [T02-0526]
Reviews, objections and appeals
ZATCA may assess or correct zakat within 5 years of the filing deadline; 10 years if the return was late, incomplete or not in the approved form, or zakat was not paid on time. There is no time limit for evasion or for an unregistered payer.
Source:Zakat IR Art. 106 [T02-0518]Anyone affected by a ZATCA decision may object to ZATCA within 60 days from the day after notification. ZATCA must decide within 90 days of filing.
Source:GSTC Procedures (Royal Order 25711) Arts. 5-6 [T02-0703]To be accepted, a zakat objection requires payment of all zakat on undisputed items and 10% to 25% of the zakat on disputed items, or a financial guarantee.
Source:Zakat IR Arts. 97 116 [T02-0522]If ZATCA rejects the objection, or does not decide within 90 days, the payer has 30 days to ask for ZATCA’s internal settlement committee or to file a case with the dispute circuits. Their decision may be appealed within 30 days, except where the amount is SAR 50,000 or less.
Source:GSTC Procedures Arts. 5-6 [T02-0704]GSTC Procedures Arts. 31 33 34 [T02-0708]
Frequently asked questions
Who must pay zakat in Saudi Arabia?
Resident Saudis carrying on a licensed activity, establishments and companies set up in the Kingdom and owned by Saudis, the Saudi partner’s share in resident companies, and other listed categories such as CMA-licensed funds. GCC nationals are treated like Saudis for zakat.
What is the zakat rate for companies?
2.5% of the zakat base for a Hijri year. For a Gregorian financial year the rate is pro-rated by days: 2.5% divided by the days in the Hijri year, multiplied by the days in the financial year.
When is the zakat return due?
Within 120 days after the end of the zakat year, through ZATCA’s e-system, together with the payment. For a 31 December year end that is 30 April; if day 120 is an official holiday, the deadline moves to the next working day.
Does a company with foreign owners pay zakat?
Only on the Saudi/GCC-owned share. The foreign share pays corporate income tax at 20%, so a company with both Saudi and foreign owners files for both. A wholly foreign-owned company files income tax, not zakat.
When must a new company register for zakat?
Before the end of its first financial year. After that it files a zakat return with supporting documents each year, answers ZATCA’s requests and pays the zakat due.
What zakat certificates does ZATCA issue?
A registration certificate, issued in the first financial year and valid until 120 days after the end of that year; and a final certificate, issued after the return is filed and the dues are paid, which lets the business complete government procedures and receive final dues.
What happens if zakat is not paid?
A payer with final unpaid zakat can be barred from government tenders, from recruiting foreign workers, and from issuing or renewing its commercial registration, licences and work permits.
How long can ZATCA review a zakat return?
Generally 5 years from the filing deadline; 10 years if the return was late, incomplete or not in the approved form, or zakat was not paid on time. There is no limit for evasion or for a payer who never registered.
How do I object to a zakat assessment?
File the objection with ZATCA within 60 days from the day after notification. To be accepted, pay the zakat on undisputed items and 10% to 25% of the zakat on disputed items, or provide a financial guarantee. ZATCA must decide within 90 days.
What if ZATCA rejects my zakat objection?
Within 30 days you can ask for ZATCA’s internal settlement committee or file a case with the dispute circuits. A dispute circuit decision can be appealed within 30 days, except where the amount is SAR 50,000 or less.
General information only, not tax or legal advice. Laws change; check the official Arabic text or speak to a qualified adviser before acting.
Rules cited on this page
Each statement above names the library row it comes from. The law and article, the date the row was last verified against the official source, and a link to the official text where one is held are listed here.
| Row | Law / article | Verified on | Official text |
|---|---|---|---|
| T02-0500 | Zakat IR (MD 1007/1445H) Art. 3 | 2026-10-04 | — |
| T02-0501 | Zakat IR Art. 6(1); Income Tax Law Art. 2(a) and Art. 7(a); Income Tax IR Art. 1(1)(a) | 2026-10-04 | — |
| T02-0504 | Zakat IR Art. 15(1)-(2) | 2026-10-04 | — |
| T02-0514 | Zakat IR Art. 98 | 2026-10-04 | — |
| T02-0515 | Zakat IR Art. 102 | 2026-10-04 | — |
| T02-0518 | Zakat IR Art. 106 | 2026-10-04 | — |
| T02-0522 | Zakat IR Arts. 97 116 | 2026-10-04 | — |
| T02-0526 | Zakat IR Art. 125(2) (Royal Order 16145 of 1/4/1437H) | 2026-10-04 | — |
| T02-0703 | GSTC Procedures (Royal Order 25711) Arts. 5-6 | 2026-10-04 | — |
| T02-0704 | GSTC Procedures Arts. 5-6 | 2026-10-04 | — |
| T02-0708 | GSTC Procedures Arts. 31 33 34 | 2026-10-04 | — |
| T02-0950 | ZATCA Guideline for Frequently Asked Questions, Version One 2023, payment & certificates section Q2-Q3, PDF p.47 | 2026-10-05 | official text ↗ |
| T02-0951 | ZATCA FAQ Guideline Version One 2023, registration section Q3, PDF p.18 (URL as T02-0950) | 2026-10-05 | — |