Zakat for Company Wealth

Zakat for Company Wealth

Author: Sa’id Yai

Regarding company wealth, if it is owned by a single person, the owner can pay the zakat (obligatory alms) directly according to rules concerning zakat for wealth (zakat al maal).

But if it is owned by several persons, there are several steps to take note of. Firstly, the zakat should be paid according to amount of shares each person invests in it. Secondly, after the shares are identified, the next step is to look into the company business.

For a company that operates in trading only, the zakat should be paid from the shares combined with the person’s individual wealth (all of his shares plus his own wealth).

But for a company that operates in multi sectors, the calculation is different, since some of the shares have been converted into goods, such as building, vehicle, etc, which aren’t meant for trade and thus aren’t the object of zakat. Therefore, the zakat is extracted not from total shares, but from capital, goods that are meant for sale, and profits gained. If each of those components’ amount in that company is known, and each shareholder knows the percentage of his shares, he can calculate it and combine it with his personal wealth. The total sum of those is the basis for his zakat.

As for company’s receivables, the scholars hold different opinions in it; however, it is a safer option for the company owner to include it in his zakat calculation.

Allaah knows best.

Article of

Leave a Reply

Your email address will not be published. Required fields are marked *