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Last Monday, the Capital Market Authority (CMA) held a workshop to introduce the “Rules for Collecting Zakat from Investments in Investment Funds”, attended by 203 concerned parties and 74 participating market institutions, in addition to CMA’s representatives.

The CMA aims from holding this workshop to raise the awareness of the investment funds managers concerning collecting Zakat from investments in investment funds and being familiar with their responsibilities and obligations stipulated in the CMA-approved draft of the Rules for Collecting Zakat from Investments in Investment Funds.

The workshop discussed the funds managers’ obligations, in light of the Rules for Collecting Zakat, including the registration of all investment funds with the Zakat, Tax and Customs Authority (ZATCA) before the end of the first fiscal year from the approval of their establishment, submission of the fund’s information declarations within sixty (60) days ahead the end of the fiscal year, the commitment of the taxpayer or the owner of the investment unit to provide the required information for Zakat base, and finally to inform the CMA upon the Fund termination or liquidation sixty (60) days before the process date.  

The workshop also introduced the Rules for Collecting Zakat from Investment Funds, determining non-trading securities percentage of listed equity funds, in addition to referring to applying the Rules for Calculation of Zakat for Financing Activities on direct and indirect finance funds, provided that Zakat is due on said funds.

It is worthy to mention that ZATCA has launched the “Rules for Collecting Zakat from Investments in Investment Funds” to survey the public’s views at the beginning of the current month until August 31, 2022.  ​

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