22 December 2016 Saudi Arabia issues circular on accounting treatment for zakat in financial statements of banking company The Saudi Arabian Monetary Authority (SAMA) issued a circular on December 14 (the circular), to all the banks in Saudi Arabia, clarifying the accounting treatment of zakat in their financial statements. According to the circular, SAMA has decided to continue following the accounting for zakat as set out in accounting standards as issued by SAMA in 1994 (SAMA accounting standards). Further, the circular has set out certain changes in the SAMA accounting standards. SAMA has sought views in this regard from reporting banking companies. A Tax Alert prepared by Ernst & Young Saudi Arabia, and attached below, provides additional details. Document ID: 2016-2198 |
