Zakat and Tax Services in Saudi Arabia

BMS Saudi Arabia has dedicated Zakat and Tax Consultants offering planned Zakat Accounting and Tax Services in Saudi Arabia, ensuring ZATCA compliance. Every individual and corporate taxpayer wishes to pay only the amount required by the law. The rules and regulations concerning Zakat in Saudi Arabia have to be dealt with due care; any loophole could bring fines or penalties. One needs to understand the correct percentage of Zakat and how it is applied. In this way, you will always stay within the ambit of compliance for your Zakat tax obligation without running the risk of any extra unwanted financial burden.

How do we approach Zakat and Tax Services?

The main objective is to enable the economic strength and security of the society for the citizens of Saudi Arabia by developing Zakat and tax systems that provide outstanding service. The Zakat and Tax services at BMS Auditing Saudi Arabia, fully compliant with Saudi Arabia zakat regulations, include the following:

• • • Helping clients understand the monetary importance and requirements concerning current or future operations.
    • Assist clients in preparing the annual Zakat and filing package for income tax and submit it on their behalf to GAZT.
    • Represent clients regarding Zakat and Income tax concerns before the Appeal Committee and Board of Grievance.

Here are a few important Zakat and Tax services offered by BMS:

• • • Calculating Zakat and Tax
    • Preparing and filing Zakat and Tax returns
    • Tax and Zakat assessment support and appeal concerns 
    • Tax planning 
    • Zakat and Tax advisory
      
      

Taxes form a vital part of modern business, but all of the regulations and legislation make it confusing to go through. The tax advisory experts provide support to Zakat assessment with comprehensive services for the protection of the position of the company to ensure prosperity. With rich experience in zakat law and zakat compliance in Saudi Arabia, expert professionals help businesses thrive while adhering to all pertinent regulations.

Zakat Declaration

With the use of this service, you may file Zakat-related returns for a certain financial year (including transaction pricing forms). On the Authority portal, your declaration will be accessible for timely submission.

Requirements:

• • • Should have an Authority e-Portal registration.
    • Financial records for your business.
    • Verify the kind of declaration and the financial terms are valid.
    • Model for transaction price.

Zakat Payment

Once the declaration is complete, a SADAD invoice is generated with the invoice number and the outstanding balance. Using the SADAD number, payment can be made via ATM or Internet banking. This process ensures zakat collection in Saudi Arabia is efficient and straightforward.

Requirements:

• • • Zakat Complete Declaration

Zakat Registration

Any activity aimed at generating income or employment is subject to zakat. Therefore, when a firm registers with the Ministry of Commerce, a Tax Identification Number (TIN) is generated. The first step in registering for Zakat services involves creating an account on the General Authority of Zakat and Tax (Saudi Zakat Authority) website.

Requirements:

• • • Enrollment with the ministry of commerce.
    • Establishing agreement (for companies only).

Zakat and Tax Returns Filings

• • • Help with the preparation and evaluation of tax and zakat returns
    • Tax and zakat returns, as well as accompanying schedules, must be translated into Arabic.
    • Contrast schedule data with financial statements.
    • Submit tax and zakat returns online to the General Authority for Zakat and Tax (GAZT) on behalf of customers.
    • Assist in the completion of controlled transaction disclosure forms for transfer pricing.

Zakat Accounting

 Zakat accounting involves the calculation of Zakat and then keeping a record of the same. It is a process through which the amount of Zakat payable by any individual or business firm, on account of its wealth and assets, can be calculated. This, therefore, means that the procedure encompasses the determination of the value of the money on hand, money for investment, other money, assets, and liabilities. It also includes determining the right distribution of zakat to qualifying beneficiaries.

It is important to have proper knowledge and be acquainted with the rules and guidelines in the Implementation of Zakat laws for compliance assurance; for that effect, Zakat accountants are professionals with expertise in this field and are equipped with the qualifications and experience to help their clients. Corporate organizations or even individuals, for that matter, in assisting their Zakat accounting needs, can help in the calculation of how much Zakat is due, the known and accurate records to keep, and the assurance of compliance with the laws and regulations.

Accounting of zakat is an important aspect of Islamic finance, meaning this is a complex and hard process for most individuals and businesses to get right. With the experienced Zakat accountants, the process can be made very easy. Therefore, in going through such a process, one will be considered compliant and fulfill all required religious obligations.

Mechanism of Tax and Zakat in Saudi Arabia

The Zakat, Tax and Customs Authority has undergone various developmental phases and changed its name too. Established in 1936 A.D. as the Zakat and Income Bureau, it then became the Zakat and Income Authority. Ultimately Royal Decree No. (A/133), had mentioned in Section 11 the “Zakat & Income Authority” would be converted into the General Authority of Zakat & Tax (GAZT), which would be directed by the Minister of Finance.

According to the law, the Authority would be responsible for collecting the Zakat and taxes and ensuring the most efficient performance by its members in doing their duties. Based on their roles in practices and legal responsibilities, the Authority ensures powers and responsibilities of other groups are protected while making the maximum efforts to achieve its goals.

If your organization requires assistance in Zakat and Tax advisory services, BMS provides the most efficient tax and Zakat services along with additional tax consultancy services for Saudi businesses. The team listens to your needs and draws an idea about your business and the obstacles faced, thus identifying the ideal tax solutions and planning accordingly together.

Zakat and Tax Advisory Services

BMS Saudi Arabia recommends maintaining open communication to ensure the team can provide regular updates. Transparency is crucial in their approach to delivering professional tax and Zakat services. BMS values honesty and integrity, understanding that clients appreciate these qualities. Prioritizing clients and addressing challenges uniquely, BMS excels in offering Zakat for businesses in Saudi Arabia.

If your company wishes to expand the business in Saudi Arabia, BMS Auditing Saudi Arabia is always here to deliver Zakat and tax advisory services and assist you with the following:

• • • Deciding the ideal corporate structure from the Zakat and Tax outlook 
    • Choosing the type of the most beneficial subsidiary capitalization 
    • Evaluating how a limited liability company would help its clients meet their strategic objectives
    • Locating operations in administrations offering incentives
    • Managing concerns such as the filing of Zakat and Tax returns for clearance certificates and appeals

Need help with tax advisory or Zakat and Tax services? Reach out to BMS Auditing in Saudi Arabia for the most efficient Tax and Zakat services, as well as Zakat and Tax advisory for ZATCA clients through qualified and professional experts.