Significant components of Zakat base of the Company, which are subject to adjustment under Zakat and income tax regulations, are equity at the end of the year, the closing balance of the liabilities classified as non-current and the non-current deductible assets.
Furthermore, under the new Zakat regulations, the Company’s Zakat base for each reporting period must be at least equal to its net income and cannot exceed its net equity and its equivalent.
31.1 Charge for the year:
The charge for the years ended December 31, consists of the following:
31.2 Components of Zakat base
The significant components of the approximate Zakat base for years ended December 31 comprised the following:
| Description | 2025 | 2024 |
|---|---|---|
| Equity at the end of year | 4,582,446 | 4,397,459 |
| Provisions at the end of year | 24,652 | 61,935 |
| Non-current liabilities at the end of year | 1,182,298 | 1,331,037 |
| Additional current liabilities in relation to spare parts and consumables materials | 86,467 | 76,533 |
| Non-current deductible assets | (5,087,925) | (4,884,429) |
| Spare parts and consumables materials | (119,141) | (111,378) |
| Allowable deduction in relation to loan to employees | (3,308) | (4,887) |
| Approximate Zakat base | 665,489 | 866,270 |
| Net income (i.e. minimum limit) | 855,315 | 972,028 |
| Total equity and its equivalent (i.e. maximum limit) | 4,654,157 | 4,509,592 |
| Zakat base as per the Zakat regulations | 855,315 | 972,028 |
| Zakat provision for the year | 22,047 | 24,301 |
31.3 Provision for Zakat and income tax
The movement in Zakat and income tax payable is as follows:
| Description | Income tax | Zakat | Total |
|---|---|---|---|
| At January 1, 2024 | 9,981 | 69,346 | 79,327 |
| Prior year reversal | (7,916) | - | (7,916) |
| Charge for the year | - | 24,301 | 24,301 |
| Payment | (2,065) | (61,827) | (63,892) |
| At December 31, 2024 | - | 31,820 | 31,820 |
| Prior year reversal | - | (3,427) | (3,427) |
| Charge for the year | - | 22,047 | 22,047 |
| Payment | - | (25,788) | (25,788) |
| At December 31, 2025 | - | 24,652 | 24,652 |
31.4 Status of assessments
The Company has filed its Zakat and income tax returns up to the year ended December 31, 2024. Zakat assessments for years up to the year ended December 31, 2023, have been finalized with ZATCA. ZATCA is yet to issue its final assessments for the year ended December 31, 2024.