Zakat for Saudi Companies: Rate, Filing & Deadlines

Saudi-owned and mixed-ownership companies operating in the Kingdom continue to settle their zakat obligations through the national zakat and tax authority's online services portal, under implementing rules that now apply to financial years starting after 1 January 2024.

Resident companies wholly owned by Saudi or GCC nationals are subject only to zakat, while resident companies with mixed Saudi/GCC and foreign ownership pay zakat on the Saudi/GCC share and corporate income tax on the foreign share. The standard zakat rate is 2.5% of the zakat base for a Hijri year, with a minimum zakat of SAR 500 for the taxpayer category specified in the regulation.

A key point for business owners is that zakat is calculated on the zakat base rather than on accounting profit. Returns and payment are due within 120 days from the end of the zakat year — meaning a company with a 31 December 2025 year-end faced a due date of 30 April 2026. Every zakat payer covered by the rules must also register before the end of its first fiscal year.

How payment works

The authority runs the assessment and return workflow entirely online. Once a return is submitted, the system generates a payment reference, and the amount is settled electronically through the SADAD bill-payment system rather than by cash collection.

The current implementing regulation replaces the older collection regulation and related inconsistent rules. It also brings transfer-pricing requirements into scope for zakat payers for financial years beginning on or after 1 January 2024, so mixed-ownership entities and larger groups should review their documentation. Zakat services, including the individual return-submission service for establishments with transaction-pricing forms, are available through the authority's electronic services portal.

---

Stay updated with the latest news, events, sports updates, business insights, real estate and lifestyle stories on Saudi Living — the leading online platform for residents, expats, and visitors in Saudi Arabia.

Follow Saudi Living for daily updates:

• Instagram - @saudiliving
• X - @saudiliving
• Facebook - @saudiliving
• YouTube - @saudiliving