Zakat and income tax estimator (Saudi Arabia)
Estimate 2.5% zakat on the Saudi and GCC-owned share of a simplified zakat base and 20% income tax on the non-Saudi share of taxable income, for a mixed-ownership company. A planning estimate, not a return. Rates as of September 2026.
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This is a simplified base: capital, retained earnings and reserves, provisions and long-term loans, less fixed assets and other deductions. ZATCA's full computation adds and deducts further items and applies the base or the adjusted profit as the rules require, so treat this as a planning figure and confirm the return with your adviser.
Sources
Why one company pays two levies
Saudi Arabia taxes by ownership. The share of a company owned by Saudi and GCC nationals is subject to zakat at 2.5% of the zakat base, and the share owned by others is subject to income tax at 20% of taxable income. A company 60% Saudi-owned therefore computes both, each on its own share.
The zakat base and taxable income are different measures. The base is broadly the equity and long-term funding that has been in the business through the year, less what is tied up in fixed assets and similar items; taxable income is the adjusted profit. The simplified base here is meant for planning, not for the return.
Filing and what to book
The zakat and income tax return is filed, and the amount paid, within 120 days of the end of the financial year, after registering for a tax identification number. Capital gains and withholding tax have their own rules and are not part of this estimate.
In the ledger, zakat and income tax are charged to the year they relate to, with the estimate accrued at year end and trued up when the return is filed. Skyline Nexus ERP keeps the ownership split and the base inputs on the company record so the accrual can be posted from the same figures.
Common questions
Are GCC nationals treated as Saudi for zakat?
Yes. The share owned by GCC nationals is subject to zakat, not income tax, in the same way as the Saudi share.
Is zakat charged on profit?
Not directly. It is 2.5% of the zakat base, which is built from equity and long-term funding less deductions such as fixed assets; ZATCA's rules compare the base with adjusted profit in some cases. This tool uses the simplified base only.
What is the income tax rate for the foreign share?
20% of the taxable income attributable to non-Saudi, non-GCC ownership. Certain sectors carry different rates, and approved regional headquarters enjoy a 0% rate on qualifying activity for 30 years.
When is the return due?
Within 120 days of the end of the financial year, with payment by the same date. A December year end files by the end of April.
Does this estimator upload anything?
No. It runs in your browser and produces an estimate, not a filing. Only the optional form at the bottom sends anything, and only if you choose to email yourself the result.
Email me this result as a PDF
Leave your name and work email and we send you a printable copy of this result, with a note on how Skyline Nexus ERP books the same figure automatically each month.