Saudi General Authority of Zakat and Tax has introduced new regulatory amendments to improve zakat collection, the authority said in a statement released by the government’s Center for International Communication on Friday.
The Authority said the government will assume the zakat liability on government-issued debt instruments to encourage the local debt market.
On Thursday, the Authority announced the issuance of the executive regulations for zakat collection and rules for zakat calculations of financing activities.
The statement noted that the new regulations, which will be implemented as of next year, came with a number of changes, the most important of which is the improvement of zakat collection procedures to achieve the highest level of commitment and efficiency, and increase transparency, which will be reflected on investments and increasing investor confidence.
It explained that the changes will have a significant positive impact in zakat treatment of under development real estate, which will support the real estate development industry and encourage investment in it.
The executive regulations clearly defined the criteria of the zakat components for insurance activities and taking into account the specificity and nature of the activity and its objectives.
The Authority also indicated it developed and improved Zakat’s account for funding activities to increase the level of commitment and reduce any dispute that may arise between it and the taxpayers.
The government’s assumption of zakat liability on government-issued debt instruments and income tax on Sukuk will enhance local and international investment in it.
