Saudi Gazette report RIYADH — Saudi Arabia is the only country in the world that is interested in collecting Zakat officially, Minister of Finance Dr. Ibrahim Al-Assaf said here on Tuesday after inaugurating the 5th Annual Conference of Tax Forum for Middle East and North Africa. Zakat is a practice of taxation and redistribution obligatory for all Muslims who are able to do so based on accumulated wealth. Assaf said that the tax system in the Kingdom is one of the best in the world, but the more important issue is the experience of the Kingdom in Zakat collection as it collects Zakat in trade items officially. He said the Kingdom's hosting of the tax forum is an opportunity to inform the world about the tax system and Zakat collection. The forum is being organized by the Department of Zakat and Income and International Center for Taxes and Investment. Assaf expressed optimism over the Kingdom's robust economy, especially in non-oil sector. He highlighted the Kingdom's continuing policy of giving priority to spending on human development and infrastructure sectors to diversify the economy and create jobs for citizens. He pointed out that the Kingdom has been able to strengthen its fiscal position by building reserves and reducing the ratio of public debt to Gross Domestic Product (GDP) to less than 3%. The Kingdom will continue to implement structural reforms to promote strong growth, encourage economic diversity, raise citizens' employment, and advance the march of sustainable development, the minister said. He said the Kingdom has achieved remarkable progress in building financial institutions enjoying flexibility and durability. These policies supported by tax flexibility have contributed in attracting foreign investment. On the Foreign Account Tax Compliance Act (FATCA), the minister said that it is a US Act, the implementation of which was announced in July this year. He said that some countries are signing agreements with US for the application of this Act. FATCA is a United States federal law that requires US citizens, including individuals who live outside the United States, to report their financial accounts held outside of the US, and requires foreign financial institutions to report to the Internal Revenue Service (IRS) about their US clients.
