The Zakat, Tax and Customs Authority (ZATCA)
The Zakat, Tax and Customs Authority (ZATCA) is the entity responsible for managing and collecting Zakat, taxes, and customs in the Kingdom of Saudi Arabia, aiming to unify all related procedures.
Defining the Zakat, Tax and Customs Authority
ZATCA is a key government body that plays a vital role in organizing Zakat, implementing the customs system, providing customs services and clearance, and managing all tax-related procedures.
The Authority was established in 2021 following the merger of the General Authority of Zakat and Tax (GAZT) and the Saudi Customs Authority. This merger aimed to enhance efficiency and optimize performance in the administration of Zakat, tax, and customs operations.
Objectives of the Authority
- To efficiently collect and manage Zakat, taxes, and Saudi customs in accordance with KSA regulations, while streamlining all associated procedures.
- To organize import and export operations, ensuring compliance with customs laws, HS codes, and customs tariffs.
- To educate individuals and businesses on the importance of tax and customs compliance and provide the necessary services to achieve it.
- To establish monitoring mechanisms for detecting and addressing tax and customs evasion, as well as refining customs clearance processes to boost government revenue.
- To strengthen the national economy by enhancing non-oil revenues to support the state budget and create an attractive investment environment.
- To promote transparency in all tax and customs procedures.
- To combat corruption through increased transparency and oversight.
- To ensure tax justice among all taxpayers.
- To achieve long-term financial sustainability for the state by increasing non-oil revenues.
- To improve the working environment in Saudi Arabia by simplifying procedures and unifying regulations.
Tasks of the Authority
- Collecting Zakat from companies and establishments in accordance with Islamic Sharia and local laws.
- Managing and collecting taxes imposed on individuals and companies, such as Value Added Tax (VAT) and Income Tax.
- Regulating and monitoring the movement of goods across Saudi borders to ensure compliance with customs laws.
- Preventing the entry of prohibited or non-compliant goods into the local Saudi market.
- Applying the customs system, managing customs duties, and providing facilities to support foreign trade.
- Partnering with international organizations to exchange information and develop customs clearance mechanisms.
Services of the Authority
- Providing digital solutions for tax registration and the calculation/collection of due taxes and customs.
- Facilitating online payment methods for taxes and customs duties.
- Responding to taxpayer inquiries regarding tax and customs regulations.
- Carrying out inspection and monitoring activities.
- Working closely with the private sector to improve compliance and service delivery.