ABSTRACT
This article observes that the nature of Zakat is such that it is as capable as any tax system and it can be a subject of revenue law, for there are substantive similarities between Zakat and taxation; also it argues that Zakat is an independent tax system through listing its unique elements including sources, rates, payers and expenditure. This article examines the critical issues in the current Saudi Zakat law, and thereby defines the gaps in the law to show why it is technically an incomplete Zakat system and why there are many controversial aspects of its application. Nevertheless, the practice of the Department of Zakat and Income Tax (DZIT) has contradicted Zakat legislation in respect of the double paying of Zakat. Hence, Zakat law needs an updated interpretation and legal explanation to help decrease the difficulties in understanding the law of the DZIT and to help its application develop in this era of international tax competition.