Who Needs to Pay ZAKAT in KSA?

Zakat is a mandatory payment mandated by Sharia law for Muslims, constituting one of the five pillars of Islam. Zakat is a crucial component of Islamic finance and, for those who fulfill the conditions, is seen as a religious obligation for all Muslims. Most Muslim nations allow citizens to choose whether or not to pay zakat. But in Saudi Arabia, all Muslims who have the means to do so are required to pay zakat. If Zakat is not paid, there may be legal repercussions. Zakat payment in Saudi Arabia    is a structured process managed by the government to promote social equity and ensure compliance with Islamic teachings.

In the Kingdom of Saudi Arabia, Zakat is assessed on the entire equity of entities fully owned by Saudi or GCC nationals. For entities with non-Saudi or non-GCC partners, Zakat is applied only to the Saudi/GCC ownership share, while the foreign partners' share of profits is subject to Income Tax regulated by ZATCA.

Who needs to pay ZAKAT in KSA?  

Zakat is believed to be a promise that must be fulfilled for those in need. It is believed that Zakat, when channeled through Islamic assistance, is highly effective in supporting those in need. Zakat contributes to the following:

• Food for emergencies
• Refugees and others in need of shelter
• Work-based Learning
• Medication and associated uses
• Further assistance based on Islamic law

All adult Muslims who fulfill the nisab and Hawl requirements within a lunar year (or Hijri year) are required to pay Zakat for that period. Certain requirements necessitate the participation of others. For example, zakat payment is required of Walis and guardians of minors. You can ask an Imam or a scholar for clarification on the Zakat payment. 

Reyson Badger - ZAKAT Consultants in KSA   

Reyson Badger's dedication to meeting its Zakat commitments in Saudi Arabia is a prime example of the Kingdom's adherence to moral and legal requirements. Part of the business's operations is the computation and payment of Zakat, which guarantees adherence to the rules established by the Zakat, Tax and Customs Authority (ZATCA).