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13 March 2025

Saudi Arabia issues amendment to Executive Regulations for Zakat Collection

  • Saudi Arabia has issued an amendment to a provision of Ministerial Resolution No.1007, concerning the Executive Regulations for Zakat Collection (Bylaws).
  • The amendment, issued through Ministerial Resolution No. 947, extends the application period until 30 April 2025 to apply the provisions of the Executive Regulations for fiscal years that started before 1 January 2024.
  • Zakat payers who wish to file an application to apply the Bylaws' provisions for fiscal years prior to 1 January 2024 should review how the new deadline can help them comply with their tax obligations and also potentially benefit their business.
 

Executive summary

On 14 February 2025, Ministerial Resolution (MR) No. 947 dated 26/07/1446 AH, was published in the Official Gazette, extending the application filing period for zakat payers wishing to apply the provisions of the Executive Regulations for Zakat Collection (Bylaws) to fiscal years that began before 1 January 2024. Zakat payers can now submit the application until 30 April 2025.

Detailed discussion

On 21 March 2024, Saudi Arabia's Minister of Finance approved the new Executive Regulations for Zakat Collection (Bylaws) under MR No. 1007. The objective of this resolution is to offer clear guidance on the methods for calculating zakat and consolidate various zakat regulations.

The amendment issued through Ministerial Resolution No. 947 relates to the timeframe specified in paragraph (d/1) of item (Fourth) of the Bylaws with respect to the application filing period for zakat payers wishing to apply the Bylaws' provisions to fiscal years that began before 1 January 2024. The original deadline for filing the application was 60 days from the date of publication of the Bylaws (21 March 2024).

The recent amendment provides zakat payers additional time to thoroughly evaluate the impact of the Bylaws on their zakat commitments, and to prepare and file the relevant application.

Implications

Zakat payers looking to implement the provisions of the Bylaws to fiscal years prior to 1 January 2024 should consider how the timeline extension would help them comply with the relevant provisions and also potentially benefit their business.

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Contact Information

For additional information concerning this Alert, please contact:

Ernst & Young Professional Services (Professional LLC), Riyadh

Ernst & Young Professional Services (Professional LLC), Jeddah

Ernst & Young Professional Services (Professional LLC), Al Khobar

Ernst & Young LLP (United States), Middle East Tax Desk, New York

Published by NTD’s Tax Technical Knowledge Services group; Carolyn Wright, legal editor

Document ID: 2025-0658

 
 

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