Darul Iftaa Mahmudiyyah

If one owns 40% of shares in a company, then how is Zakaat calculated on his share?

· 19 Ramadan 1421 AH1 min readFatwa 1788English

Question

The question text was not published separately; the title stands in for it.

If one owns 40% of shares in a company, then how is Zakaat calculated on his share?

Answer

If the company is a trading investment then Zakaat is payable on the capital amount as well as the dividends. If the company is not a trading investment and only receives income, for example, from rentals of properties, then Zakaat is liable only on the dividends.

In this case, as a shareholder of a trading investment, Zakaat is due at 2.5% of the 40% shareholding on the capital, as well as on the dividends.

And Allah Ta'ala Knows Best.

Mufti Ebrahim Desai
(Al-Mahmood 12)

Answered by
Mufti Ebrahim Desai
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Source: Darul Iftaa Mahmudiyyah — https://askimam.org/public/question_detail/1788
Fatawa SA: https://fatawa.co.za/fatwa/askimam-1788

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