GACO receives 2021-22 Zakat assessment, sees positive impact on 2025 results

Logo of Al Gassim Investment Holding Co. (GACO)

Al Gassim Investment Holding Co. (GACO) received today, Jan. 18, through its Zakat advisor, a Zakat assessment for the years 2021 and 2022 from the Zakat, Tax and Customs Authority (ZATCA), in accordance with the updated Zakat Collection Regulations for 2023.

The total assessed amount stands at SAR 5.34 million, compared to SAR 9.74 million under the previous regulations, resulting in savings of SAR 4.39 million, GACO said in a Tadawul filing.

This positive impact, according to the company, will be reflected in the 2025 income statement, noting that sufficient provisions had already been earmarked to cover any final discrepancies.

According to Argaam data, in October 2024, GACO had announced receiving letters from ZATCA demanding the payment of SAR 6.39 million in Zakat discrepancies for 2021 and 2022. In response, the company had allocated provisions worth SAR 5.49 million as of Sept. 30, 2024.

Under the new rules, a Zakat Assessment is a decision issued by ZATCA indicating its acceptance or amendment of a Zakat declaration or determining the amount of Zakat due from a taxpayer (whether based on estimates or audited accounts), in accordance with available information and the authority’s established procedures.

The regulations further define Zakat discrepancies as the treatment of differences that affect the adjusted net profit or loss. These include undeclared revenues or inflated expenses. ZATCA reserves the right to correct such discrepancies and re-assess the Zakat accordingly.