Mufti Online — Madrasah Ta'leemuddeen

Do we have to calculate Zakaat on the Capital amount invested?

Published as Zakaat on the Capital Investment

· 28 Rajab 1433 AH1 min readEnglish

Question

Please can you help with guidance on the following with regards to Zakaat:
My family have made an investment in a Shariah compliant business that pays out monthly returns.We understand that on the returns received and saved for 12 months or more, 2.5% of the value saved is due as Zakaat.
The question is, what about the Capital invested in the Shariah compliant business. (In this instance, it’s a take away, but it could be an investment in Albaraka Bank or Oasis Shariah compliant
Products that may be paying out monthly / quarterly / half yearly or annual dividends or profits)
Do we have to calculate Zakaat on the Capital amount invested?

Answer

Generally, the capital that is invested is used to run the business. Any normal business has three categories of wealth:
(1) fixtures and fittings, vehicles used for business purposes, property, etc.
(2) assets that are bought purely for resale.
(3) cash flow.
The first category is not zakatable and the second and third are both zakaatable. You may enquire from the people you have invested with as to approximately how they have utilised your wealth and accordingly calculate your zakaat.

References (Arabic / Urdu sources)

( ولا في ثياب البدن ) المحتاج إليها لدفع الحر والبرد ابن ملك ( وأثاث المنزل ودور السكنى ونحوها )

و قال في رد المحتار : وقوله ونحوها أي كثياب البدن الغير المحتاج إليها وكالحوانيت والعقارات (رد المحتار 2/264)

(أو نية التجارة ) في العروض إما صريحا ولا بد من مقارنتها لعقد التجارة كما سيجيء أو دلالة بأن يشتري عينا بعرض التجارة ( الدر المختار 2/267)

Answered by
Mufti Ebrahim Salejee (Isipingo Beach)
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Source: Mufti Online — Madrasah Ta'leemuddeen — https://muftionline.co.za/node/531
Fatawa SA: https://fatawa.co.za/fatwa/muftionline-531

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