ZATCA has amended Zakat regulations, revising residency criteria, exemption conditions, Zakat base calculation, and group filing requirements.
Saudi Arabia’s Zakat, Tax and Customs Authority (ZATCA) issued new amendments to the Zakat Collection and Administration Regulations on 24 June 2025.
The changes clarify residency determination for Zakat purposes through a dual test based on physical presence and management location, and expand the definition of a “taxable person” to include individuals and entities engaged in licensed economic activity, directly or indirectly.
The revised rules set stricter criteria for exemptions granted to charities, endowments, and educational institutions, requiring valid licences, audited financials, and controlled disbursements. Amendments also introduce updated Zakat base controls, with specific treatment for trading and long-term investments, shareholder loans, and foreign investment valuations.
Further changes cover unified group filing conditions, ZATCA’s reassessment powers, and base manipulation limits through minimum and maximum thresholds.
