The basic rule
- Zakat: on the share of Saudi and GCC owners, at 2.5% of the zakat base.
- Income tax: on the share of non-Saudi, non-GCC owners, at 20% of taxable profit.
Example
A company owned 60% by a Saudi partner and 40% by a foreign partner: zakat applies to the 60% share on the zakat base, income tax applies to the 40% share on profit. Two calculations, one return.
The zakat base isn't profit
The zakat base depends on equity, balances and assets — not just net profit. So even in a weak year you may owe zakat, and your books need to be in order.
Deadline and certificate
The annual return is due within 120 days of the financial year end. After filing and payment you receive the zakat certificate, needed for tenders, government dealings and some licence renewals.
Key takeaways
- Zakat 2.5% on Saudi/GCC ownership
- Income tax 20% on foreign ownership
- Return due within 120 days of year end
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