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.