The following categories, whenever they practice an activity with the intention of making profit either in the form of money or business, shall be subject to zakat:
- Natural Saudi persons who are residing in the Kingdom of Saudi Arabia (KSA) and GCC countries' nationals of the same status.
- Saudi establishments domiciled in the KSA where zakat applies to the shares of Saudi persons and GCC countries' nationals of the same status and to the shares of Saudi governmental authorities and corporations.
A limited liability company with a capital of SR 100,000 has earned SR 30,000 as profits. It has loans at SR 150,000 and net fixed assets at SR 80,000. How zakat is calculated for that company?
The standard method applied by GAZT in calculating zakat for the companies, which have regular accounts, is the method of equities (straight-line method) whereby fixed assets are deducted from the capital to which the credit items listed in the financial statements, for which one complete year has lapsed, are added. Accordingly, the zakat base for such company is as follows:
|Net Profit||30,000 SR|
|Minus net Fixed Assets||80,000 SR|
|Zakat Base||200,000 SR|
|Legal Zakat||5,000 SR|