Off-Plan Projects and Zakat: How MR 1248 Redefines Compliance for 2025

Ministerial Resolution No. 1248, issued in June 2025, updates Article 73 of the Zakat Executive Regulations under MR 1007. The amendment focuses on how Zakat is calculated for real estate projects sold before completion, addressing long-standing uncertainty for developers across Saudi Arabia.

Key Changes:

• Defined deduction mechanism: Off-plan project deduction = Closing project balance – Additions during the year (if positive).

• One-by-one project assessment: Each licensed off-plan project must be calculated separately; combined or mixed projects must split current and non-current assets before deduction.

• Retroactive use optional: Companies can apply for the new treatment on prior years’ filings if they comply with ZATCA’s requirements.
• Deduction ceiling introduced: The deduction amount cannot exceed the project’s opening balance, replacing the previous flexibility in computation.
  Dhruva Consultants

Conclusion

New Zakat update for 2025 — MR 1248 clarifies how developers calculate Zakat for off-plan projects, ending uncertainty in real estate compliance.

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.  

For understanding more about VAT Updates, Transfer Pricing, Corporate Tax Law and Registration reach out to us on: contact@acme-group.me | +971 52 740 1169