The Saudi General Authority of Zakat & Tax (GAZT) has released a guide to assist real estate businesses with calculating zakat liabilities. Zakat payers can calculate their zakat base by adding internal and external source of funds (zakatable assets) and subtracting fixed assets, accumulated losses and long-term investments (non-zakatable assets). Zakat is payable on the higher of the zakat base – calculated at 2.5% for 354 days (the length of the Hijri year) or 3.5% of tax-adjusted profits. See our TaxFlash for more.

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