Article 1 of the Saudi Zakat Collection Law
المادة 1 من نظام جباية الزكاة
The Article limits the application of Decree No. (17/2/28/3321) dated 21/1/1370 AH to individuals and companies that do not hold Saudi nationality.
Official text (Arabic)
This article has not been amended since the law was issued.
تعتبر أحكام المرسوم رقم (17 / 2 / 28 /3321) وتاريخ 21 المحرم 1370، خاصة بالأفراد والشركات الذين لا يحملون الرعوية السعودية.
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 1 explained in plain English
This Article sets the scope of application of an earlier decree, Decree No. (17/2/28/3321) dated 21/1/1370 AH, providing that its provisions are specific to individuals and companies that do not hold Saudi nationality.
In practice, this means that the Law distinguishes between two groups:
- Non-Saudi individuals and companies: the provisions of Decree No. (17/2/28/3321) referred to apply to them.
- Saudi individuals and companies: Article 2 of this Law deals with them, providing that obligatory zakat is collected from them in accordance with the provisions of Islamic Shari'ah.
This Law does not contain the text of Decree No. (17/2/28/3321) itself, so this Article does not state the obligations, rates or procedures its provisions impose; it only identifies the group it concerns. Anyone who wants to know those provisions must turn to the text of that decree and the laws and regulations issued after it.
This Law is old and brief, and its subjects may have been dealt with by later laws and regulations; anyone with a specific case about the zakat of a non-Saudi company or individual would therefore do well to consult a lawyer who specializes in zakat, tax and company law to confirm the provisions in force that apply to him.
Practical example
A foreign company that does not hold Saudi nationality carries on business in the Kingdom and asks which provisions apply to it under this Law. Under this Article, the provisions of Decree No. (17/2/28/3321) dated 21/1/1370 AH are the ones that concern it, unlike its Saudi partner, which Article 2 deals with, collecting obligatory zakat from Saudis.
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 1 of the Saudi Zakat Collection Law
To whom do the provisions of Decree No. 3321 of 1370 AH apply?
Under this Article, its provisions are specific to individuals and companies that do not hold Saudi nationality.
Does this Article cover Saudi companies?
No. The Article limits that decree to non-Saudis; Saudi individuals and companies are dealt with by Article 2, which provides for collecting obligatory zakat from them under Islamic Shari'ah.
Does the Article state a rate of tax or zakat on non-Saudis?
No. It states no rates or amounts and only identifies the group the provisions of that decree concern.
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.