The General Authorities for Zakat and Tax (GAZT) amended the determination procedure for the Zakat and income tax liability of listed companies by circular 6768/16/1438 of 4 December 2016.
Prior to this, Saudi listed companies were subject to Zakat and / or income tax in accordance with their shareholdings referred to in the Articles of Incorporation, without the need to dispense with the listed shares.
According to the Circular listed shares will also be taken into consideration for determining the income tax and/or Zakat liabilities. The provisions of the Circular are applicable from the issue date of the Circular which is 4 December 2016 and companies with financial year end date of 31 December will be fall under the provision of the Circular.
