Zakat for Businesses
Calculate, review, and file with clarity
What is Corporate Zakat?
Corporate Zakat is a financial obligation for businesses in Saudi Arabia that is regulated by the Zakat, Tax, and Customs Authority (ZATCA).
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It is calculated at a flat rate of 2.5% of the Zakat base, which represents a company’s net zakatable assets after allowable deductions.
Applies to entities owned by Saudi and GCC nationals
Serves both as a compliance requirement and as a mechanism to support fair wealth distribution in line with national regulations.
Who is liable?
Resident businesses
owned by Saudi/GCC nationals.
Mixed ownership companies
(Saudi share = Zakat, foreign share = income tax)
Exemptions
(oil, gas, foreign speculative trading)
How it’s calculated
Identify zakatable assets (cash, receivables, inventory, investments)
Deduct liabilities due within 12 months
Compute Zakat base = assets – liabilities
Apply 2.5% rate
How the tool helps
Smart data prep
Organize accounts and ledgers for Zakat rules.
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Accurate calculation
Apply the right model for bases and adjustments.
Review & export
Generate summaries, supporting schedules, and exportable packs.
Workflow
Reports you get
Zakat base summary
Supporting schedules
Adjustments and exclusions
Year-over-year comparison
FAQ
Zakat for businesses in Saudi Arabia is charged at a flat rate of 2.5% on the Zakat base, which represents the company’s net zakatable assets after allowable deductions.
Zakat applies to all resident businesses owned by Saudi or GCC nationals.
For mixed-ownership companies, only the Saudi or GCC share is subject to Zakat, while the non-Saudi share is taxed under the income tax system.
The Zakat base includes zakatable assets, such as:
Cash and bank balances
Trade receivables
Inventory and investments held for resale
Fixed assets like land, buildings, and machinery used in operations are excluded since they are not considered zakatable.
In mixed ownership entities, the Saudi/GCC partners pay Zakat at 2.5% of their share, while foreign partners pay income tax on their share of net profits (usually 20%). This ensures each ownership portion is treated under the correct system.
Zakat payments are made through the Zakat, Tax and Customs Authority (ZATCA) portal:
Submit your Zakat return within 120 days after the fiscal year ends.
ZATCA will issue a SADAD invoice with a unique payment code.
Pay online through your bank or ATM using SADAD code 020.