The General Authority of Zakat and Tax (GAZT) has denied media reports about its plans to impose Zakat on individual current bank accounts.
The authority said in a statement that the amended Zakat regulations, which is set to be implemented in January 2020, will be applied only on commercial establishments owned by Saudis and GCC nationals based in Saudi Arabia, while the value-added tax (VAT) will be implemented on foreign corporations and companies.
“Earlier this year, GAZT has issued new zakat collection regulations set to be implemented by the beginning of 2020.”
Under the new regulations, the government will bear the zakat on government-issued debt instruments to encourage local and international investments, the statement added.
The amended regulations include enhancing the collection procedures in order to ensure transparency and efficiency, which would reflect on raising investors’ trust and attracting more investments.
A positive impact is expected to be seen on settling zakat claims for under-construction property, which will support the real estate sector.
The amendments clarify the zakat liability on insurance activities, given its unique nature and objectives.
The zakat collection regulations also aim to improve the mechanism of Zakat calculation and reduce any related disputes, the statement noted.
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