Construction
Zakat on WIP and Contract Assets (Saudi Arabia)
Accruing Zakat on the construction company's Zakatable base including WIP and net working capital.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Zakat Expense | Expense (+) | 80,000.00 | - |
| Zakat Payable (ZATCA) | Liability (+) | - | 80,000.00 |
💡 Accountant's Note
In Saudi Arabia, construction companies pay Zakat instead of income tax. The Zakatable base includes equity, long-term liabilities, and certain adjustments. WIP is typically included in the calculation.
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