Mada Advanced for Tax and Zakat Consultancy
Services
Zakat
Zakat is the third pillar of Islam. It refers to all the money
that the givers of charity spend for its known disbursement
channels. In Islamic Sharia it is (a share of money and the
like that shall be given to the poor and the like on special
conditions). Zakat was called by this name because it was
prescribed to purify money. Also, paying zakat is a reason
for the increase and growth of money, and a reason to
increase and multiply the reward for the zakat giver in the
hereafter. Zakat is called charity, except that charity
includes obligatory and supererogatory duties, unlike
zakat, which is obligatory and duty act. Zakat is obligatory
with regards to cattle, gold and silver, di erent types of
crops and fruits, trade commodities, rikaz and metal. Zakat
is obligatory and is not a charitable contribution. It is not
considered a tax. Rather, it di ers from it, and there is no
dispute on its amounts and provisions except in a few minor
issues. The Zakat payer or his representative pays the Zakat
to the bene ciaries. If the ruler requests it, it must also be
paid. Zakat is only paid to its legal disbursement channels.
Nonpayment of Zakat is the cause of money damage and
loss and the punishment in the hereafter. The ruler is also
obligated to take zakat from the one who does not pay it
because he doesn’t believe it is obligatory.
Zakat and Tax services
Mada Advanced Company provides advice and solutions for zakat on trade commodities, which is calculated according to two mathematical
equations approved by Sharia authorities, namely the working capital equation and the equity (net worth) equation.
The working capital equation is the direct equation for calculating zakat on trade commodities.
Its components are current assets, which includes funds available in banks, inventory and row materials, commercial debts and securities held for sale, minus the currents liabilities that relate to these assets, which are composed of current liabilities that includes debts payable
to others, accruals and short-term notes & securities.
Theis known as the zakat base. Zakat is calculated at
a rate of 2.5% (a quarter of a tenth) of the zakat base.
The equity equation, is composed of shareholders equity (share
capital, retained earnings, reserves and current pro ts), and
long-term obligations less xed assets & investments.
The resulting di erence is the zakat base. Necessarily the
application of either of the two equations should lead to
the same zakat base, aassisting zakat payers to calculate
zakat on their wealth.
Our professional services in the field of zakat include
- Assisting zakat payers to pay their Zakat to (ZATCA) in
KSA, who deliver the zakat to the recipients approved in
the Shariah law - In cases of di erent commercial activities, we can help the
zakat payers to consolidate the results of the activities
and pay zakat on the uni ed Zakat base - Communicating with (ZATCA) and obtaining Zakat
certi cates and facilities for zakat payers - Conducting training courses for the nancial
departments of companies on how to calculate zakat on
trade commodities in line with Shariah law - Providing professional advice to the zakat payers on any
inquiries related to zakat on funds, investments and trade
commodities
Value Added Tax (VAT) services
Value Added Tax (VAT) is an indirect tax levied at di erent stages of every supply chain.
The tax is borne by the nal consumer while the registered entities calculate and collect the tax on behalf of (ZATCA).
VAT is applied in more than 180 countries around the world, as it is a
primary source of income that contributes to strengthening countries’ budgets.
Saudi Arabia has committed to implementing VAT at 15% starting from January 1, 2018 (14 Rabie Al Thani 1439)
Our professional services in eld of VAT include the following:
- Registering companies and corporation for VAT purposes with (ZATCA) and obtaining tax
identi cation number - Assessing tax impact on companies and corporations, reviewing contracts signed with
suppliers and service providers, also providing appropriate advice for the correct
application of VAT rules - Participating in modi cation and development of the taxpayers’ accounting systems to
comply with value added tax requirements - Objection against unfavorable tax assessments and representation of taxpayers before
administrative and judicial committees - Preparation, ling and submitting of VAT returns on (ZATCA) website and Providing
specialized training courses on VAT rules & regulations
Real Estate Transaction Tax
Real Estate Transaction Tax is a tax of 5% of the value of the property that is to be sold or transferred, regardless of its condition or form, and includes “the land and what is established, constructed or built on it, and is paid before or during the real estate evacuation or documentation of contracts, noting that it was imposed by Royal Order No.
(A/84) dated 2/14/1442 AH in support of the Saudi citizens and to alleviate their burden, address their needs and take into account their circumstances, and with the aim of providing continuous support to them, in a way that achieves their well-being and provides them with the means of a decent life.
Our professional services in this eld include the following:
- Registering the real estate transaction tax on (ZATCA) website (Real Estate Transactions
Platform). - Paying the real estate transaction tax.
- Recovering the real estate transaction tax.
- Providing consultations regarding the exceptions contained in the Real Estate Transactions
Tax System and its Executive by- laws. - Objecting to the real estate transaction tax assessments in the event that it is not
acceptable.
Accounting Consulting
- Providing technical advice and developing the accounting systems.
- Designing accounting manuals and chart of accounts suitable to the activities of
companies, establishments and corporations. - Designing accounting and administrative reports suitable to the needs of management
and Directors. - Designing accounting policies and preparing nancial systems and e ective internal
control systems for companies, establishments and corporations. - Preparing accounting records and submitting account statements and trial balances
according to regulatory requirements. - Preparing in-house nancial statements on a regular basis for the assistant of
management. - Preparing and processing (Manual Book) a guide to accounting entries for nancial
management.
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Address
El Khereiji Building near Le Meridien hotel, Al-Madinah Al-Munawarah Rd, Ar Rawdah, Jeddah 22235 | Saudi Arabia
Call Us
+966568711616 | +966505586143
Email Us
info@mada-adv.com