Okaz, 6 June 2023: The Zakat, Tax and Customs Authority has introduced fresh revisions to the regulations concerning the calculation of zakat on financing activities. The objective of these amendments is to include both direct and indirect financing funds within the scope of zakat calculation rules.
Under the proposed amendments, banks, financing companies authorised by the Saudi Central Bank, as well as direct and indirect financing funds licensed by the Capital Market Authority, will now fall under the purview of these regulations.
All funding sources of direct and indirect financing funds will be considered liable for zakat, except for obligations which have a maturity period of less than one year.
To view more news items and other content we have available, visit lexis.ae/demo to book a demo and start your free trial of Lexis® Middle East.
Want to learn more about Lexis® Middle East? Visit, https://www.lexis.ae/lexis-middle-east-law/.