Logo ofZakat, Tax, and Customs Authority (ZATCA)
The Zakat, Tax and Customs Authority (ZATCA) proposed an amendment to the executive regulations for Zakat collection to poll opinions on Istitlaa platform until Jan. 29, 2025. 
It suggested adding a paragraph that addresses the mechanism for calculating Zakat on off-plan sales projects according to a treatment that considers the nature of these projects.
ZATCA said that the purpose of the amendment is to clarify the Zakat treatment of off-plan sales projects.
ZATCA suggested adding the third paragraph to Article 73 of Real Estate Projects Under Construction, stipulating that Zakat on off-plan sales projects must be treated as follows:
– Off-plan sales projects – licensed by the competent authority based on the regulations in force in the Kingdom – are deducted from the Zakat base according to the following equation whenever the result is more than zero: Deducted from the base = Project balance at the end of the year – Value of additions to the project during the year.
– The equation is applied to each project separately.
– If part of the project balance is classified in the financial statements as current assets and the other part as non-current assets, the deduction resulting from applying the equation contained in paragraph (a) of this article must begin from the non-current part, and the remaining deduction – if any – must be completed from the current part.
– The sources of funds for off-plan sales projects must be added in accordance with Chapter Three of the Regulations.
– Article 25 of the Regulations must be considered when applying the above-mentioned.
Logo ofZakat, Tax, and Customs Authority (ZATCA)
The Zakat, Tax and Customs Authority (ZATCA) proposed an amendment to the executive regulations for Zakat collection to poll opinions on Istitlaa platform until Jan. 29, 2025.
It suggested adding a paragraph that addresses the mechanism for calculating Zakat on off-plan sales projects according to a treatment that considers the nature of these projects.
ZATCA said that the purpose of the amendment is to clarify the Zakat treatment of off-plan sales projects.
ZATCA suggested adding the third paragraph to Article 73 of Real Estate Projects Under Construction, stipulating that Zakat on off-plan sales projects must be treated as follows:
– Off-plan sales projects – licensed by the competent authority based on the regulations in force in the Kingdom – are deducted from the Zakat base according to the following equation whenever the result is more than zero: Deducted from the base = Project balance at the end of the year – Value of additions to the project during the year.
– The equation is applied to each project separately.
– If part of the project balance is classified in the financial statements as current assets and the other part as non-current assets, the deduction resulting from applying the equation contained in paragraph (a) of this article must begin from the non-current part, and the remaining deduction – if any – must be completed from the current part.
– The sources of funds for off-plan sales projects must be added in accordance with Chapter Three of the Regulations.
– Article 25 of the Regulations must be considered when applying the above-mentioned.
