Adjusted net profit
In one sentenceThe year's accounting net profit after adding back expenses not accepted under Zakat rules, such as provisions made during the year and penalties; it is part of the Zakat base.
Simply put
Not every expense in the income statement is accepted for Zakat; whatever is not accepted is added back to net profit to reach adjusted profit.
It has a second role: Zakat cannot be less than adjusted net profit × the rate, even if the base comes out lower.
Worked example
A spare parts store made an accounting net profit of 100,000 SAR, and its expenses include items not accepted under Zakat rules.
Accounting net profit100,000 SAR
+ Allowance for doubtful debts made this year20,000 SAR
+ Regulatory penalties5,000 SAR
Calculation100,000 + 20,000 + 5,000
Adjusted net profit125,000 SAR
Formula: Adjusted net profit = accounting net profit + expenses not accepted for Zakat
Don't confuse it with
Net profit marginThe margin is an analytical ratio of sales, while adjusted profit is an amount that enters the Zakat calculation.