Subjecting Net Profit to Zakāt in Saudi Law
Arab Law Quarterly (2022) 1–16
Posted: 25 Jul 2022 Last revised: 4 Jan 2023
Date Written: July 1, 2022
Abstract
This study aims to discuss a legal principle that has not been settled in Saudi tax tribunals, namely, the Saudi authority subjecting the adjusted annual net profit to zakāt when the zakāt base of the taxpayer is less than the adjusted annual net profit. This study discusses the religious viewpoint by considering zakāt as one of the pillars of Islam, and, from a legal and accounting viewpoint, to propose enhancements for the Saudi legal environment to be more attractive to taxpayers.
Keywords: zakāt, Saudi law, net profit, zakāt base
Suggested Citation: Suggested Citation
Altawyan, Ahmed, Subjecting Net Profit to Zakāt in Saudi Law (July 1, 2022). Arab Law Quarterly (2022) 1–16, Available at SSRN: https://ssrn.com/abstract=4159722
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