{"id":4785,"date":"2024-01-08T05:05:11","date_gmt":"2024-01-08T05:05:11","guid":{"rendered":"https:\/\/bpcpasa.com\/?p=4785"},"modified":"2025-05-12T13:21:33","modified_gmt":"2025-05-12T13:21:33","slug":"calculating-the-zakat-base","status":"publish","type":"post","link":"https:\/\/bpcpasa.com\/en\/calculating-the-zakat-base\/","title":{"rendered":"The Authority’s Method for Calculating the Zakat Base"},"content":{"rendered":"

The<\/a> Zakat, Tax and Customs Authority (ZATCA) in Saudi Arabia<\/strong> adopts an indirect method\u2014commonly known as the Sources of Funds Method\u2014for Calculating the Zakat Base. This method is built upon two primary steps:<\/p>\n

    \n
  1. \n

    Additions<\/strong>: Representing external sources equivalent to deductible assets.<\/p>\n<\/li>\n

  2. \n

    Deductions<\/strong>: Representing the value of non-Zakatable and Zakatable assets.<\/p>\n<\/li>\n<\/ol>\n

    The formula for Calculating the Zakat Base is:<\/p>\n

    Zakat Base = Additions \u2013 Deductions<\/strong><\/p>\n

    Reasons for Additions to the Zakat Base<\/strong><\/h3>\n

    To ensure accurate Calculating the Zakat Base, ZATCA requires the inclusion of external funding sources (obligations) based on the assumption that they are prioritized to finance repaid items before internal sources of funding. The order is:<\/p>\n

      \n
    1. \n

      External sources of funds<\/strong> (up to the value of repaid assets)<\/p>\n<\/li>\n

    2. \n

      Internal sources of funds<\/strong><\/p>\n<\/li>\n<\/ol>\n

      The Additions include:<\/p>\n