{"id":4629,"date":"2024-03-01T07:57:47","date_gmt":"2024-03-01T07:57:47","guid":{"rendered":"https:\/\/bpcpasa.com\/?p=4629"},"modified":"2025-05-03T16:31:15","modified_gmt":"2025-05-03T16:31:15","slug":"estimated-zakat-calculation","status":"publish","type":"post","link":"https:\/\/bpcpasa.com\/en\/estimated-zakat-calculation\/","title":{"rendered":"Estimated Zakat Calculation and the Role of the Zakat Accountant"},"content":{"rendered":"

Today\u2019s topic is the Estimated Zakat Calculation<\/em>, which is mandatory for individuals subject to the estimated assessment system, as specified by the Zakat, Tax and Customs Authority in Saudi Arabia.<\/p>\n

So, what is estimated zakat? And how is the Estimated Zakat Calculation<\/em> done? This article will explore these questions and provide further insight into this method of zakat.<\/p>\n

Estimated Zakat Calculation<\/strong><\/h2>\n

Estimated zakat is a form of zakat imposed by the Zakat and Tax Authority on any zakat payer who does not maintain formal accounting records.<\/p>\n

The authority has confirmed that those subject to this method are individuals or establishments without formal accounts or financial statements, and who are not required to have them\u2014such as small grocery stores.<\/p>\n

To perform the Estimated Zakat Calculation<\/em>, follow these steps to determine your zakat due:<\/p>\n

    \n
  1. \n

    Use the revenue (sales) reported in VAT.<\/p>\n<\/li>\n

  2. \n

    Apply a 15% profit margin.<\/p>\n<\/li>\n

  3. \n

    Calculate the capital by dividing revenue by 8.<\/p>\n<\/li>\n

  4. \n

    Add both results and multiply the total by 2.5%.<\/p>\n<\/li>\n<\/ol>\n

    Formula: (Sales \u00f7 8) + (Sales \u00d7 15%)<\/strong><\/p>\n

    It is worth mentioning that the Saudi Zakat and Tax Authority has set the minimum zakat for estimated filers at SAR 500.<\/p>\n

    Objection to Estimated Zakat<\/strong><\/h2>\n

    The authority allows taxpayers to object to their Estimated Zakat Calculation<\/em> if they disagree with the amount assessed.<\/p>\n

    Steps to file an objection include:<\/p>\n