Okaz/Saudi Gazette JEDDAH — The Minister of Finance and Chairman of the Board of Directors of the General Authority of Zakat and Tax (GAZT) Muhammad Al-Jadaan has approved that the state bear the Zakat and income tax ensuing from investing in Sukuk (bonds) and debentures that are issued by the Minister of Finance locally in Saudi riyals until their due date. According to the decision, which Okaz has seen, the state will bear the tax if the Sukuk or debentures holder submits his undertaking during the legal period in line with GAZT procedures. He must also pay the due amount to GAZT. The Sukuk or debentures holder should submit his undertaking to GAZT during the legal period as required by the GAZT regulations. He must also pay the amount owed to GAZT. The Sukuk and debentures holder ought to be among those who are paid their dues according to the lists and in line with GAZT procedures. Furthermore, the bonds and debentures holder should not be among the authorities that are exempt from payment of Zakat and income tax. The state would not bear an amount that is greater than what the Sukuk holder had paid to GAZT. The amount borne by the state as Zakat on bonds and debentures will be kept in two accounts for the holder. From the first one, the bonds and debentures will be deducted while nothing will be deducted from the second one. Then the difference between the two accounts is taken and it is multiplied by the Zakat percentage stated in the Zakat Collection Bylaw. The result will give the amount the state will bear. The state will stop bearing any of the government debt instruments except Sukuk issued within the Program for Issuing Sukuk in Saudi Riyals at the Ministry of Finance, as of the year 2020.
