Darul Iftaa Mahmudiyyah

When calculating Zakaat what value of company shares should be used? i.e. current value or purchase price as values do change drastically

· 21 Shaʻban 1421 AH1 min readFatwa 1533English

Question

I have a number of shares in different companies. I want to give Zakaat but do not know what notional value to use in order to calculate the amount payable. For example, the market recently has been very volatile so if I use the price on diffrent days then the amount due would differ markedly. Please help.

Answer

1. If the company buys and sells merchandise, Zakaat will be calculated on the capital investment as well as on the dividends. If the company does not buy and sell but only leases out properties, Zakaat will only be calculated on the dividends earned, not on the capital amount. (Fatawa Rahimiya vol 2 pg.14)
2. Zakaat should be calculated at the average market related value.

and Allah Ta'ala Knows Best

Mufti Ebrahim Desai
FATWA DEPT.

Answered by
Mufti Ebrahim Desai
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Source: Darul Iftaa Mahmudiyyah — https://askimam.org/public/question_detail/1533
Fatawa SA: https://fatawa.co.za/fatwa/askimam-1533

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