Article 2 of the Saudi Zakat Collection Law

This Article is the basic rule of the Zakat Collection Law, providing that obligatory zakat is collected from individuals and companies holding Saudi nationality, and that this is done in accordance with the provisions of Islamic Shari'ah.

The text makes clear that:

• Who it covers: two categories of Saudis, individuals and companies, so it is not limited to persons alone.
• What is collected: obligatory zakat, the well-known religious obligation, not a man-made tax.
• The reference for its rules: the provisions of Islamic Shari'ah; the Article does not itself set rates, bases or dates but refers to Shari'ah.

This Article corresponds to Article 1, which makes the provisions of Decree No. (17/2/28/3321) dated 21/1/1370 AH specific to non-Saudis; the division is therefore clear: obligatory zakat is collected from Saudis, and the provisions of that decree concern non-Saudis. Article 3 provides that the provisions of this decree are effective from the date the provisions of Decree No. (17/2/28/3321) are applied.

Because the text is brief and does not address the details of calculation, declaration and collection, those details are not in this Law. Anyone with a question about his company's obligation or his personal one should consult a lawyer or adviser who specializes in zakat and tax.