Zakat on partners' shares
In one sentenceCalculating Zakat in a company only on the shares of Saudi and GCC partners in the base, while the shares of other partners are subject to income tax.
Simply put
In a mixed company the full base is calculated, then the share of partners subject to Zakat is taken according to their ownership percentage.
If all partners are Saudi or GCC nationals, the whole base is subject to Zakat.
Worked example
A company with a Hijri financial year and a base of 420,000 SAR; Saudi partners own 60% and the foreign partner 40%.
Full Zakat base420,000 SAR
Saudi partners' share 60%420,000 × 60% = 252,000 SAR
Calculation252,000 × 2.5%
Zakat on the Saudi share6,300 SAR
Formula: Zakat = base × percentage of partners subject to Zakat × Zakat rate
Don't confuse it with
Income taxThe share of a partner who is neither Saudi nor a GCC national is subject to income tax, not Zakat.