Aqid ERPZakat on a business
In Saudi Arabia a company owned by Saudi or other GCC nationals pays zakat to ZATCA on its zakat base; the share of a company owned by others pays income tax instead, so a mixed company pays both, in proportion. The rate is 2.5% of the zakat base for a Hijri year of 354 days. A business whose financial year is Gregorian applies the rate for the year's length: 2.5% × 365 ÷ 354, about 2.578%.
A worked example
A company with a zakat base of SAR 1,000,000.
| Hijri year: 1,000,000 × 2.5% | 25,000.00 |
|---|---|
| Gregorian year of 365 days: 1,000,000 × 2.5% × 365 ÷ 354 | 25,776.84 |
| Gregorian year of 366 days | 25,847.46 |
What this does not do
The hard part of zakat is the base, not the rate. The Zakat Implementing Regulation says what is added (equity, long-term financing, provisions and more), what is deducted (fixed assets, long-term investments and more), and sets a floor tied to the year's profit. This calculator takes the base as given, or additions less deductions, and applies the rate; it does not apply those rules. The return is due within 120 days of the year end.