The Saudi Shura Council has approved on 9 June 2014 draft regulations concerning the computation and collection of Zakat on commercial and professional activities.
The regulations accept Zakat payers to pay up to 20% of their Zakat to registered charitable institutions with authorization to receive Zakat. According to the draft regulations Zakat will be imposed on immovable properties and real estate held for trading or leasing purposes. But in the Zakat base fixed assets are not covered.
If the taxable period is the Hijri year Zakat will be computed at the rate of 2.5% and if the taxpayer adopt the Georgian year Zakat will be computed at the rate of 2.577%.
