Saudi Zakat 2025: Key Law Updates

Key Points:

• ZATCA’s Implementing Regulation for Zakat Collection (MR 1007, 1445H) now applies to fiscal years starting 1 Jan 2024 and replaces the old zakat regulation.
• MR 947, issued in January 2025, extends the deadline to apply the new zakat regulations to fiscal years beginning before 1 Jan 2024, now until 30 April 2025.
• MR 1463, issued in June 2025, further extends that deadline to 31 August 2025.
• MR 1248 amends Article 73 of the new regulation: it clarifies how to treat off-plan real estate projects for zakat purposes (licensed projects can deduct: “project closing balance – additions during year”).
• The ZATCA Zakat Base Additions Guideline (2025) explains how to compute zakat base: what counts as equity, what liabilities to add, and how to treat provisions.
• Zakat payers should carefully assess whether applying the new regime (retroactively) is beneficial — but note: refunds for overpaid zakat under old rules are not guaranteed.

Conclusion

Zakat in Saudi just got a major upgrade — with new calculation rules, a longer application window, and clearer treatment for real-estate projects. Use the extra time wisely.

Disclaimer:  The Content offers general guidance and should not be considered legal, financial, or tax advice. Consult qualified professionals for personalized guidance. While efforts have been made to ensure accuracy, no guarantee is provided for completeness or applicability to individual situations. Users are responsible for their interpretation and actions based on this information, at their own risk.  

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