According to a new Circular No. 36025/9/1437 dated 14/11/1437H (17 August 2016) of the General Authority of Zakat and Tax, each of the wholly owned subsidiaries are now obliged to file an additional information form in addition to the holding company’s filing of a consolidated zakat return. This will be applicable to all zakat payers who file on Hijri year basis from 30th Dhu-al-Hijjah 1437H (that is,1 October 2016) and those filing on Gregorian Calendar basis 31 December 2016.
Also, the Holding companies must confirm that their wholly owned subsidiaries are filing information returns based on their corresponding stand-alone financial statements. The entities should ensure in their report that transactions that are giving rise to withholding tax are properly disclosed and reported in a timely way.
