Saudi Corporate Zakat Calculator 2026, ZATCA's Zakat Base Method

This calculator is entirely different from the personal Zakat calculator on this site. Your personal zakat is a direct 2.5% of your net wealth, cash, and gold. Corporate zakat at the Zakat, Tax and Customs Authority (ZATCA) is not computed directly from asset values — it runs through a zakat base built from the company's funding sources on its balance sheet. Conflating the two methods is a common mistake that produces a completely wrong number. If you run a business that keeps regular commercial books, this calculator is for you — not the personal one.

The Authority's Method, a Zakat Base — Not a Direct Rate

The Zakat Collection Executive Regulations (issued by Ministerial Decision No. 1007, dated 19/08/1445H, amended by Decision No. 1248, dated 11/10/1446H) use the indirect method (the funding-sources method) to build the zakat base, instead of taxing assets directly.

The logic: an entity's funding sources (equity + liabilities) correspond to its uses of funds (assets) on the balance sheet. Adding funding sources to the base, then deducting whatever they financed in non-zakatable assets, arrives at the net equity that actually ended up financing zakatable assets — that's the base.

The Formula (Articles 21, 23, 26)

Example from the Authority's own guide (simplified): a company with equity of SAR 200,000, non-current liabilities eligible for addition of SAR 35,000, and fixed assets meeting deduction conditions worth SAR 60,000.

• Total addition elements: 200,000 + 35,000 = SAR 235,000
• Total deduction elements: SAR 60,000
• Zakat base: 235,000 − 60,000 = SAR 175,000
• Zakat due: 175,000 × 2.5% = SAR 4,375

What This Calculator Deliberately Does Not Compute

The calculator above implements only the core formula, and deliberately leaves the following out rather than presenting a wrong number that looks precise:

• Minimum base (Article 27): if the base result is below adjusted net profit, adjusted net profit becomes the alternative base. This needs full income-statement data.
• Maximum base (Article 28): a separate upper cap with its own conditions.
• Other deduction items: inventory not held for sale and raw materials, intangible assets, statutory deposits, investments in investment funds — each has detailed conditions in its own article of the Regulations.
• Zakat-year day proration: if the entity's fiscal year is shorter or longer than a full Hijri year (roughly 354–355 days), the rate is adjusted proportionally — ZATCA does not publish one single fixed "days in a Hijri year" figure that can be reliably hardcoded here, so the calculator assumes a full year.

In other words: missing information beats fabricated information. If your business needs any of these items, use ZATCA's own e-services or consult a licensed zakat accountant.

How the Calculator Above Works

• Adds equity to non-current liabilities (capped at the deducted assets total, per Article 23)
• Deducts net fixed assets and investments in other entities
• Computes the resulting zakat base, then multiplies by 2.5%
• Shows every step in an expandable breakdown panel

It runs entirely in your browser and sends no financial data to any server.

Common Mistakes

Applying 2.5% directly to total assets: that's an individual zakat calculation, not a corporate one. Corporate zakat passes through the zakat base first, which can be much smaller or larger than 2.5% of total assets depending on the financing structure.

Forgetting the non-current liabilities cap: not all long-term liabilities are added — only up to what they financed in deducted assets, i.e. their addition can never exceed the total of deduction elements.

Confusing an investment in a Saudi entity that pays its own zakat with an investment in an entity outside the zakat system: the former is deducted from the base to avoid double zakat; the latter has different treatment requiring direct review of the Regulations.

Practical Questions

Does this calculator apply to a sole proprietorship? The same general concept applies, but the Regulations set special treatment for sole establishments and single-person companies (their equity is treated differently regardless of its accounting classification) — check the Authority's guide or your zakat advisor.

When does the zakat year end? Usually it follows the entity's registered fiscal year with the Authority, which may be Hijri or Gregorian depending on the entity's choice at registration.

What is the deadline to file and pay? 120 days from the end of the taxpayer's zakat year.

Does treatment differ for holding companies with subsidiaries? Yes — Article 16 of the Regulations addresses consolidated zakat accounts and returns for direct ownership between a holding company and its subsidiary, with detailed conditions outside the scope of this simplified calculator.

Official Sources

• Zakat Collection Executive Regulations, ZATCA
• Zakat Base Concepts Guideline, ZATCA, 1st edition, March 2026
• Zakat, Tax and Customs Authority — official site

Read also: Personal Zakat Calculator · VAT and E-Invoicing Guide · End-of-Service Gratuity Calculator