SZTAC 38/2020/IR;2018/1514/Z
Investment in bank funds by its nature involves trading through fund management, where the fund manager engages in the turnover of the invested funds within those funds, trading in goods, buying and selling securities, or speculating in currency buying and selling, and so on. Therefore, these funds are considered commercial transactions that are not eligible for zakat deduction from the zakat base.
Background
On Wednesday, 17-11-1441 AH, corresponding to 8-7-2020 AD, the First Appellate Chamber for Income Tax Violations and Disputes met, constituted by Saudi Arabia Royal Decree No. 65474/1439 dated 23-12-1439 AH, based on clause (b) of Article 67 of the Income Tax Law issued by Saudi Arabia Royal Decree No. M1/1425 dated 15-10-1425 AH, as amended by Saudi Arabia Royal Decree No. M113/1438 dated 20-11-1438 AH, at its headquarters in Riyadh,
This meeting was held to consider the appeal submitted on 11-8-1438 AH, corresponding to 7-5-2017 AD, by (...) Company against the decision of the Primary Zakat and Tax Appeals Committee in Dammam No. (14) for the year 1438 AH, issued in Case No. (2018-1514-Z) filed by the appellant against the General Authority for Zakat and Income, which contained the following provisions: