Saudi Zakat Confidentiality and Permitted Disclosures

Confidentiality is a defined Zakat taxpayer right

Article 96 of the Implementing Regulations for Zakat Collection, 1445H, requires ZATCA to preserve the confidentiality of the taxpayer’s Zakat information, with Articles 108 and 109 governing permitted disclosure and its safeguards. ZATCA’s General Guideline, section 6.2.5, explains the same framework.

Article 108 extends the duty to the Authority, its employees and those working for it or for its benefit who encounter the information through their work. Confidentiality therefore concerns the handling of information across the relevant work, rather than only the officer who first received a return.

The protection is substantial but subject to specified disclosure cases. It should not be described as an absolute prohibition on sharing information or as permission for unrestricted circulation whenever a public body asks for it.

Identify which of the four disclosure cases applies

Article 108 permits disclosure where required by relevant laws or regulations or a judicial ruling; where requested by oversight bodies relevant to implementing the regulation; where requested by an official foreign entity to implement a treaty or agreement to which Saudi Arabia is a party; or where based on the taxpayer’s written consent.

These are distinct bases. A private commercial request is not automatically equivalent to a request from a relevant oversight body. A foreign recipient’s official status alone does not establish the treaty or agreement condition.

Dariba recommendation: when reviewing a proposed disclosure, identify the actual basis and the information it concerns. If reliance is placed on consent, retain the written consent and establish its scope. Do not describe informal cooperation or a general willingness to assist as if it necessarily satisfies the regulation’s written-consent limb.

A permitted case still needs official assignment

Article 109 imposes safeguards when disclosure takes place under Article 108. The first is official assignment by ZATCA. The existence of a permitted disclosure category does not dispense with the need for the Authority’s formal authorisation of the disclosure.

Dariba analysis: the legal basis answers why the information may be disclosed; the official assignment addresses the particular disclosure being carried out. A review that records only one of those questions is incomplete.

Businesses should use the recognised official channel when clarifying a request or providing sensitive records. A person claiming to assist an inquiry should not be treated as authorised solely because they know details of the taxpayer’s affairs. Verify the request and record the response without assuming that confidentiality eliminates a valid obligation to cooperate.

Limit disclosure to its purpose and necessary extent

Article 109 also requires the disclosure to remain within its intended purpose and the extent necessary to achieve it. This is a separate safeguard from identifying an Article 108 category.

Dariba illustration: suppose a permitted request concerns one defined transaction. The existence of a lawful disclosure basis does not, by itself, explain why unrelated customer or employee information would be needed. The relevant purpose and necessary scope must still be addressed. This is an original illustration of the limitation, not an official example or a ruling on a particular request.

Dariba recommendation: organise records clearly so the relevant transaction, periods and entities can be identified. Where unrelated material is intertwined, discuss the appropriate scope through the official channel. Do not assume the taxpayer may unilaterally withhold a required document or alter evidence merely because it contains confidential information.

Protect the data and ensure the recipient understands its status

Article 109 requires measures that preserve the confidential data and prevent loss, damage or unlawful circulation. Before disclosure, the recipient must be fully aware of the information’s confidentiality and the applicable confidentiality requirements.

These conditions address both the handling process and the recipient. A confidentiality label can assist, but it is not a substitute for the actual safeguards. Equally, a secure transfer channel does not by itself establish that the recipient understands the restrictions.

Dariba recommendation: maintain a record of what was provided, to whom, when and for what identified purpose. Use appropriate access controls and agreed secure channels in the taxpayer’s own handling of the material. Those are practical recommendations for evidence and information governance; the regulation does not prescribe a particular encryption product or one mandatory document template.

Distinguish confidentiality from record and evidence obligations

Article 110 separately requires the taxpayer to keep documents supporting its return inside Saudi Arabia for at least ten years. It permits ZATCA to request information within the stated period and obtain material from third parties without returning to the accounts-based taxpayer, subject to the relevant laws and procedures.

Confidentiality does not remove those information powers. Article 111 also places the burden of proving the accounts-based return on the taxpayer and provides consequences where an item cannot be substantiated.

Dariba analysis: the business needs both a compliant evidence file and controlled handling of that file. Treating confidentiality as a reason not to retain or produce necessary evidence confuses two different obligations. Conversely, producing records does not turn the confidentiality safeguards into optional practices. See the separate Zakat records and compliance guide for the broader requirements.

Resolve concerns with a specific record of the issue

If a proposed disclosure raises concerns, identify the information, stated purpose, recipient and the Article 108 basis that requires clarification. Distinguish a question about legal entitlement from a question about the scope or security of a disclosure that is otherwise permitted.

Dariba recommendation: document the concern and seek clarification through the official channel. Avoid assuming that every disclosure requires taxpayer consent, because Article 108 identifies other bases. Avoid assuming that a consent form removes the Article 109 safeguards, because those safeguards apply to disclosures under the listed cases.

This framework supports a focused review: legal basis, official assignment, necessary scope, protection against improper handling and an informed recipient. The conclusion should follow the actual facts of the disclosure rather than a general promise of complete secrecy.