Zakat is an Islamic obligatory levy assessed annually on Saudi national and GCC citizen shareholders' equity in a business. The Zakat rate is 2.5% of the Zakat base calculated from the company's balance sheet adjusted assets and liabilities. In mixed-ownership companies, Zakat is levied only on the Saudi/GCC ownership portion while the foreign ownership portion is subject to corporate income tax. ZATCA administers Zakat assessment, collection and disputes. Annual Zakat returns must be filed within 120 days of the company's fiscal year end. Non-filing or underpayment attracts penalties and can affect government platform standing.