Zakat base additions
In one sentenceThe items added together on the first side of the Zakat base, such as capital, reserves, retained earnings, net profit for the year, and the loans and provisions specified by ZATCA.
Simply put
These are the funds with which the business financed its activity, whether from its owners or from its retained profits, taken from the statement of financial position at year end.
Some liabilities, such as long-term loans and certain provisions, are included under rules set by ZATCA, so review them in the return rather than adding them all automatically.
Worked example
A small factory at the end of its financial year.
Capital300,000 SAR
Statutory reserve30,000 SAR
Retained earnings70,000 SAR
Net profit for the year100,000 SAR
Total sources500,000 SAR
Don't confuse it with
Zakat base deductionsSources are added together, and deductible assets are subtracted from them.