Estimate business Zakat at 2.5% of the Zakat base — using either the net-worth (assets minus liabilities) method or ZATCA's simplified estimate — with the Hijri/Gregorian fiscal-year rate adjustment and your Saudi/GCC ownership share.
Method
Fiscal year
Zakat payable (2.5%)
Zakat is charged at 2.5% of the Zakat base for a Hijri year, prorated to about 2.5777% for a 365-day Gregorian year. File your Zakat return within 120 days of your fiscal year-end. The full ZATCA computation also applies minimum and maximum base limits — treat this as an estimate.
Zakat is an Islamic wealth assessment levied (instead of income tax) on the Saudi and GCC-national ownership share of a business, at 2.5% of the Zakat base. Two approaches are common:
(sales ÷ 8) + (sales × 15%).The 2.5% rate assumes a Hijri (lunar) year of ~354 days; a Gregorian fiscal year prorates the rate to about 2.5777% for 365 days. ZATCA's updated 1445H (2024) regulations also apply minimum and maximum Zakat-base limits and a detailed sources-of-funds computation, so treat this tool as a planning estimate. Mixed-ownership companies apportion: the Saudi/GCC share pays Zakat and the rest pays income tax / withholding tax.
Zakat is charged at 2.5% of the Zakat base for a Hijri (lunar) year of about 354 days. Entities on a Gregorian (solar) fiscal year prorate the rate — about 2.5777% for a 365-day year — because the year is longer.
Broadly, the Zakat base is the net worth a business funds for the year. A practical estimate is net zakatable assets (cash, trade receivables, inventory and trading investments) minus short-term deductible liabilities. Fixed assets used in operations are excluded.
For entities without complete records, ZATCA can estimate the base as (total sales ÷ 8) + (total sales × 15%). For example, SAR 800,000 of sales gives an estimated base of SAR 220,000 (SAR 100,000 + SAR 120,000).
Zakat is levied on the Saudi and GCC-national ownership share of a business; the non-Saudi share is subject to 20% corporate income tax on its portion of net adjusted profit instead. Enter your Saudi/GCC share to apportion the Zakat.
Zakat payers must file their Zakat return within 120 days of the end of their fiscal year, then settle via the SADAD payment system.
Disclaimer: This is a general estimate of business Zakat, not tax or religious advice. The full ZATCA Zakat computation involves specific inclusion/exclusion rules and minimum/maximum base limits under the 1445H Zakat Implementing Regulations. Confirm your Zakat with ZATCA (zatca.gov.sa) or a qualified Saudi Zakat/tax adviser. See our full disclaimer.