Article 37 of the Saudi Finance Companies Control Law
المادة 37 من نظام مراقبة شركات التمويل
The article makes the Zakat and Income Authority the body that issues the criteria needed to calculate the zakat base of finance companies.
Official text (Arabic)
This article has not been amended since the law was issued.
تصدر مصلحة الزكاة والدخل المعايير اللازمة لاحتساب الوعاء الزكوي لشركات التمويل.
This is the official Arabic wording, the only legally binding version. We do not translate the law itself; the explanation below is ours. Official source: Bureau of Experts at the Council of Ministers
Article 37 explained in plain English
This article identifies the body responsible for the zakat criteria of finance companies: the Zakat and Income Authority, by the name used in the text.
It is the body that issues the criteria needed to calculate the zakat base of finance companies. The "zakat base" is the money on which zakat is calculated.
What can be understood from the article:
- The Law itself does not set the method of calculating the zakat of finance companies.
- It assigns this task to the Zakat and Income Authority.
- The criteria themselves are not found in this article but in what the competent body issues, so no percentages or calculation methods should be inferred from the text of the article alone.
It is preceded by Article 36, which gave entities working in finance before the Law took effect a two-year period to regularize their status, and followed by Article 38, which provides that the Law repeals any provisions that conflict with it.
To learn a finance company's zakat obligations, you may consult a lawyer specialized in banking and finance or a zakat and tax specialist.
Translated from our Arabic explanation with machine assistance. For guidance only; it does not replace advice from a lawyer on your situation.
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Frequently asked questions about Article 37 of the Saudi Finance Companies Control Law
Who decides how finance companies' zakat is calculated?
The Zakat and Income Authority issues the criteria needed to calculate the zakat base of finance companies.
Does the Law set the method of calculating zakat?
No, the Law assigns the issuing of criteria for calculating the zakat base to the Zakat and Income Authority.
More articles on Definitions and Scope of the Finance Law
- Article 1
The article defines the key terms in the Finance Companies Control Law, such as finance company, beneficiary, consumer, license and finance.
يقصد بالألفاظ والعبارات الآتية - أينما وردت في هذا النظام - المعاني المبينة أمام كل منها، ما لم يقتضِ السياق خلاف ذلك: النظام : نظام مراقبة شركات التمويل. اللائ
- Article 2
The article defines the scope of the Law: it applies to finance companies licensed under its provisions.
يسري هذا النظام على شركات التمويل التي يرخص لها وفقاً لأحكامه.
- Article 3
The article requires licensed finance companies to carry on finance in a way that does not conflict with Islamic Sharia, according to Sharia committees they choose, and without undermining the soundness of the financial system and fairness of dealings.
تزاول الشركات - المرخص لها بموجب هذا النظام - أعمال التمويل بما لا يتعارض مع أحكام الشريعة الإسلامية، بناءً على ما تقرره لجان شرعية تختار أعضاءها تلك الشركات، و
- Article 36
The article gives companies and entities that carried on finance in the Kingdom before the Law took effect a two-year period to regularize their status in line with its provisions.
تمنح الشركات والمؤسسات العاملة التي تزاول نشاط التمويل في المملكة قبل سريان هذا النظام مهلة سنتين لتسوية أوضاعها وفق أحكام هذا النظام.
- Article 38
The article provides that the Finance Companies Control Law repeals any provisions that conflict with it.
يلغي هذا النظام كل ما يتعارض معه من أحكام.
- Article 39
The article requires the Governor to issue the Implementing Regulations within ninety days of the date the Law is issued, to be applied after the Law takes effect.
يصدر المحافظ اللائحة خلال تسعين يوماً من تاريخ صدور النظام، ويعمل بها بعد نفاذه.
The texts are reproduced from the official website of the Bureau of Experts at the Council of Ministers for reference; where they differ, the officially published Arabic text prevails. This content is not legal advice.