Skip to main content

ZAKAAH ON SHARES

Praise be to Allaah.

These shares are now regarded as trade goods, because trade goods are anything that is prepared for sale. So zakaah is due on them.

The zakaah on trade goods is worked out on the basis of their value at the end of the year, whether it is more than the purchase price or less.

Based on this, if these shares reach the nisaab, or they reach the nisaab when added to the cash money that you have, then you should pay zakaah on them according to their value on the day when the year ends.

Shaykh Ibn ‘Uthaymeen said:

The way in which zakaah is paid on shares in companies is as follows: if the state undertakes the mission of calculating and collecting the zakaah, then you have discharged your responsibility, otherwise zakaah must be paid in the following manner: they should be evaluated every year and one-quarter of one-tenth should be paid, if the purpose of them is to trade. But if the purpose is investment, then no zakaah is due on them, but zakaah is due on any profits they produce if it is in the form of money and one year has passed.

The Standing Committee was asked: Is there any zakaah on shares and certificates? How should it be paid?

They replied:

Zakaah is due on shares and promissory notes if they represent money or trade goods, so long as the one who is keeping the money is not going through hardship or delay payment unduly. End quote.

The Standing Committee was also asked about shares through which one buys land and real estate.

They replied:

The shares mentioned in the question are a kind of trade goods, so zakaah must be paid on them, to be evaluated every year according to their current value, not the purchase price. If the owner has money he may pay from that, otherwise he should pay the zakaah for past years from their value after selling them and taking the money.

Shaykh Ibn ‘Uthaymeen (may Allaah have mercy on him) was asked: Should zakaah on shares be based on the official value of the share or on the market value, or what?

He replied:

Zakaah on shares and other trade goods should be based on the market value. If it was worth one thousand at the time of purchase, then the value rises to two thousand at the time when zakaah becomes due, then zakaah should be based on the value of two thousand, because what matters is the value of a thing when zakaah becomes due, not when it is bought.

It should be noted that if trade goods are bought with gold or silver or cash (riyals, dollars or other currencies), or with other goods, then the year for those goods starts from the time when one acquired the wealth with which one bought them. Based on this, the new year does not start from the time when one takes possession of the new goods, rather it starts from the time when one acquired the wealth with which one bought them.

And Allaah knows best.

Comments

Popular posts from this blog

SEX BEFORE MARRIAGE AND ITS CONSEQUENCES.

In the name of Allah, most compassionate and most merciful. “From among the signs of the Hour (end of time) are that religious knowledge will be taken away (by the death of religious scholars), ignorance will prevail, drinking of alcoholic drinks, and there will be a prevalence of Zina.” – Prophet (saw) We begin our topic with these words of our beloved Prophet. How true were his words? We live in a world where all these things are prevalent and unfortunately in our Muslim community as well. Many of our Muslim brothers and sisters are trapped in the evil of Zina and it has become a norm for them, as a result they don’t even consider it haram and unlawful. Allah says in holy Quran: Sūrah al-Isrā’, 17:32: “And do not even approach zina, for it is an outrageous act, and an evil way…’’ We are not going into detail about why Zina is unlawful but in this article, you will find the consequences of this sin. How this affects a life of a person physically, mentally, spiritually and so

MUSLIMS MOURN ALI BANAT - THE MAN ‘GIFTED WITH CANCER’

It’s a sad day for all those who knew Ali Banat, the young man gifted with cancer. Ali Banat was an inspiring Australian Muslim philanthropist whose diagnosis of cancer motivated him to dedicate his life to charity work. “At this point in my life, Alhamdulillah I have been gifted by Allah with cancer throughout my body and I have changed my whole life to helping people,” he said. An Inspiration to Muslim Youth A man of a kind heart was known for his charity work over the past three years. One of his biggest achievements is MATW project, (Muslims Around The World) launched in October 2015 to assist those less fortunate in the poverty-stricken areas of Togo, Africa. He was an inspiration to Muslim youth, dedicating his big fortune to charity work. His organization built mosques and schools for the less fortunate in Africa. May Allah accept it from him! Indeed, to Allah we belong and to Him we shall return. May Allah have mercy on our brother Ali Banat and make it easy

THE MAN WHO INSPIRE MILLIONS OF MUSLIMS EVEN WHEN HE IS PASSED AWAY (ALI BANAT)

Ali Banat is a sydney born who was diagnosed with Cancer and doctors have given him only 7 months to live. Despite his circumstances, he considers this a gift from Allah. Ali Banat, is a young man who, in his own words, was “gifted” with a stage 4 cancer throughout his body. He was given just a few months to live but took this great test as an opportunity to change his life. Upon receiving this news he immediately sold his business, gave up his lavish lifestyle and prized possessions and began a new mission to give up his Dunya and work for his Akhira. Ali has humbly dedicated the remainder of his life to helping those who are far less fortunate than him and in doing so, set up the charity MATW Project (Muslims Around The World) which has already changed the lives of so many. Being diagnosed with cancer is like death sentence for many. But this is not the way Australian Muslim Ali Ali Banat sees it. For him, the sickness is unquestionably a gift from Allah. “At this point in m