Business zakat calculator for Saudi companies
Zakat for a company in Saudi Arabia is 2.5% of the zakat base for a Hijri year. A Gregorian year of 365 days uses 2.5% ÷ 354 × 365, about 2.5777%. The base is equity plus eligible liabilities and profit adjustments, minus deductible assets, then tested against a minimum and a maximum limit. This calculator gives an estimate, not a filing.
Estimate your zakat
Closing balances: capital, reserves, retained earnings, items reclassified to equity
Non-current and other liabilities that qualify under the regulation
Assets the regulation allows you to deduct, e.g. fixed assets
Used only for the minimum limit
Book profit after zakat adjustments; enter a loss as negative
As reported in the financial statements
Zakat year
365 or 366; a long first year can be longer
Estimate
- Estimated zakat due
- 412.43
- Zakat base after limits
- 16,000.00
- Zakat rate
- 2.5777%
- Base before limits
- 11,000.00
- Liabilities added (capped at deductible assets)
- 30,000.00
Estimate only. Not a zakat return or advice.
- The base was below adjusted net profit, so the minimum limit applies: the lower of assets not deducted plus the profit adjustment, and adjusted net profit.
Runs in your browser. Nothing you type is sent to a server.
How the zakat base is built
The ZATCA guideline computes the base in two steps: add and deduct the qualifying items, then compare the result with a minimum and a maximum limit.
- Liabilities added
- L = min(Qualifying liabilities, Deductible assets)
- Profit adjustment
- Δ = Adjusted net profit - Net book profit
- Base before limits
- Base = Equity + L + Δ - Deductible assets
- Minimum limit (if Base < adjusted net profit)
- Base = min(Assets not deducted + Δ, Adjusted net profit)
- Maximum limit (always)
- Base ≤ Equity and equivalents + Δ
- Rate
- Rate = 2.5% ÷ 354 × days in the zakat year
- Zakat
- Zakat = max(Base, 0) × Rate
The deemed (estimated) basis for payers without statutory accounts follows different rules and is not covered here.
Worked example: a trading company with a Gregorian year
A company closes its 365-day year with equity of 20,000 SAR, qualifying liabilities of 30,000 SAR and deductible assets of 40,000 SAR. Assets not deducted total 15,000 SAR. Adjusted net profit is 20,000 SAR against a book profit of 19,000 SAR, a profit adjustment of 1,000 SAR.
The base before limits is 20,000 + 30,000 + 1,000 - 40,000 = 11,000 SAR. It is below adjusted net profit, so the minimum limit applies: the lower of 15,000 + 1,000 = 16,000 and 20,000, which is 16,000 SAR. The maximum limit is 20,000 + 1,000 = 21,000, so it does not bind. At 2.5% ÷ 354 × 365 = 2.5777%, zakat is about 412.43 SAR. These figures follow example 16 of the ZATCA guideline.
| Step | Calculation | Amount |
|---|---|---|
| Additions | 20,000 equity + 30,000 liabilities + 1,000 profit adjustment | 51,000 |
| Deductions | Deductible assets | (40,000) |
| Base before limits | 51,000 - 40,000 | 11,000 |
| Minimum limit | lower of 16,000 and 20,000 | 16,000 |
| Maximum limit | 20,000 + 1,000 | 21,000 |
| Zakat base | Minimum limit applies | 16,000 |
| Zakat at 2.5777% | 16,000 × 2.5777% | 412.43 |
Assumptions and limits of this estimate
- The company keeps statutory accounts and is assessed on the actual basis, not the deemed basis.
- All shareholders are subject to zakat. In mixed ownership, only the share held by zakat payers is subject to zakat, and the rest falls under income tax.
- You have already classified each balance as an addition, a deduction or neither under the regulation; the calculator does not test the detailed conditions for each item.
- Liabilities are added only up to the value of deductible assets, as the guideline describes.
- Amounts are in Saudi riyals (or any single currency) at year-end values.
Which rate applies: 2.5% or 2.5777%?
The regulation sets 2.5% for a zakat year that matches the Hijri year (354 days). When the financial year has a different length, the rate is scaled by the actual number of days: 2.5% ÷ 354 × 365 = 2.5777% for a common Gregorian year.
The same formula covers a long first year. A first period from 1 November 2024 to 31 December 2025 has 426 days, so the rate is 2.5% ÷ 354 × 426, about 3.0085%, according to the guideline's own example.
| Zakat year | Days | Rate |
|---|---|---|
| Hijri year | 354 | 2.5000% |
| Gregorian year | 365 | 2.5777% |
| Gregorian leap year | 366 | 2.5847% |
| Long first year (example) | 426 | 3.0085% |
What are the minimum and maximum limits of the base?
The current regulation adds two guard rails. The minimum limit applies only when the computed base is lower than adjusted net profit; the base then becomes the lower of adjusted net profit and assets not deducted plus the profit adjustment.
The maximum limit always applies: the base cannot exceed equity and equivalents at year-end plus the difference between adjusted and book profit. If the base is negative and there is no adjusted profit, there is no zakat base for the year.
Recording zakat in the books
Under IFRS as applied in Saudi Arabia, zakat is usually charged to profit or loss with a matching zakat provision under current liabilities, then cleared when paid. Keep the zakat computation, the adjusted profit reconciliation and the classification of each balance with your working papers.
The GCC chart of accounts template includes zakat expense and zakat payable accounts, and Ledgeriano keeps the balances per business so each company's zakat base can be assembled from its own trial balance.
How to estimate a company's zakat
- 1
Take year-end balances
Start from the closing statement of financial position and the income statement for the zakat year.
- 2
Classify balances
Mark equity and equivalents, liabilities that qualify for addition, deductible assets and assets that are not deducted.
- 3
Adjust profit
Compute adjusted net profit and its difference from book profit.
- 4
Compute and test the base
Add, deduct, then apply the minimum and maximum limits.
- 5
Apply the rate
Multiply the base by 2.5% for a Hijri year, or by 2.5% ÷ 354 × days for another year length.
Frequently asked questions
Who pays zakat on business income in Saudi Arabia?
Saudi and GCC-national shareholders' share of a company in Saudi Arabia is subject to zakat. The share owned by non-GCC foreign shareholders is subject to corporate income tax instead, so mixed companies compute both.
Why does a Gregorian year pay 2.5777% instead of 2.5%?
Zakat is due once per lunar (Hijri) year of 354 days. A 365-day Gregorian year is 11 days longer, so the rate is scaled by 365 / 354, which gives about 2.5777%.
Can the zakat base be lower than net profit?
Yes, but only down to the minimum limit. When the computed base is below adjusted net profit, the base becomes the lower of adjusted net profit and assets not deducted plus the profit adjustment.
Is this calculator suitable for filing a zakat return?
No. It shows how the main mechanics work so you can sense-check a number. Filing requires the full classification rules, supporting schedules and the return on the ZATCA portal, ideally prepared or reviewed by a qualified adviser.
Does the calculator apply to other GCC countries?
It follows the Saudi rules. Other GCC states have different or no corporate zakat regimes, so check the local rules before using these figures elsewhere.
Sources
This is a simplified estimate based on the ZATCA guideline as checked on 6 November 2026. It is not tax or religious advice and not a zakat return. Rules and their interpretation change: verify with ZATCA and a qualified adviser before filing or paying.
- ZATCA: Zakat General Guideline under the Implementing Regulation for Zakat Collection 1445 AH (first version, October 2024), sections 3.4.7 and 3.4.8
- ZATCA: Zakat rules and regulations
- KPMG tax alert: Minister of Finance approves new Zakat Implementing Regulation (MR 1007, effective for years from 1 January 2024)
- Mondaq: ZATCA issues MR 947 amending the retrospective application of the new zakat rules
Last reviewed:
More free calculators
All free tools- VAT calculatorAdd VAT to a net price or extract it from a gross amount, at any rate.
- Break-even calculatorUnits and sales you need to cover fixed costs, plus target profit volume and margin of safety.
- Margin and markup calculatorSelling price, gross margin and markup from any two inputs, plus a conversion table.
- Depreciation calculatorYearly depreciation schedule with straight-line, declining balance, sum-of-years' digits or units of production.
Get these numbers from your real books
Ledgeriano computes break-even, 19 financial ratios and budget variances from your posted entries, for every business you run.