The Fatwas delivered by
the First Zakah Conference (held in Kuwait Rajab
29, 1404 A.H. / April 3, 1984 A.D.)
|Zakah on the companies
|Zakah is due on joint stock companies in the
It is rather better for the
company to give Zakah on its capital. If it does
not pay, the committee recommends that the
company should calculate the amount of Zakah due
on its capital and issue an addendum to its
balance sheet which states the amount of Zakah
due on each share.
|Zakah on shares|
If a Company pays Zakah on
its shares, a shareholder is not required to pay
Zakah on his shares once again. If it does not,
the shareholder must pay Zakah as follows.
|How to calculate the
amount of Zakah due on companies' shares?|
If the company pays Zakah, it
will calculate its amount as an ordinary person
would do. Zakah will be calculated according to
the nature and type of possessions. If the
company does not pay Zakah, a shareholder must
pay Zakah due on his shares by following any of
these two methods:
If one buys his shares for
trade purposes, Zakah is due at a rate of 2.5%
of their market value as followed when
calculating Zakah due on commercial goods.
If one buys shares in
order to make use of their annual revenues,
Zakah is calculated as follows:
If one can know from the
company the amount of Zakah due on his
shares, Zakah is to be given at a rate of
- If he cannot know, there are two
The majority of scholars
hold that the shareholder should add the
revenues of his shares to the rest of his
possessions and give Zakah at a rate of 2.5%
on all his money.
Some other scholars hold
that he should give 10% of the total
revenues after receipt as followed in
calculating Zakah on crops and fruits.
|Second: Zakah on exploited items|
Exploited items refer to
factories, buildings, cars and machines intended
for rent and not for trade. The Fatwa Committee
holds that no Zakah is due on these items, but
it is due on their revenues. There are different
opinions on how to give Zakah on such revenues.
The majority of members hold that these revenues
are to be added to the other items possessed by
their owners such as money and goods. A rate of
2.5% will be paid as Zakah on them.
On the other hand, some
members hold that Zakah is due on the net
revenues which exceed the owner's basic needs
after deducting costs and rate of consumption.
Rate of Zakah will be 10% as followed in
calculating Zakah on crops and fruits.
|Zakah on wages and
Such money is the revenues of
a man's work like workers' wages, employees'
salaries and doctors and engineers' remuneration
etc. Most members of the conference hold that no
Zakah is due on such wages upon receiving them.
One should add such wages to his own money and
pay Zakah on them all if they reach the allotted
Nisab and after they remain in one's possession
for a complete year. If he receives any wages
during the year, Zakah is to be paid at the end
of it. Such year starts from the very day on
which one's money has reached the allotted Nisab.
In such case, the rate of Zakah is 2.5%
annually. Some of the conference members hold
that Zakah is to be paid on such wages upon
receipt if they reach the allotted Nisab after
fulfilling one's basic needs and no debt is
entailed on him. If one pays Zakah on his wages
upon receipt, he is not obliged to pay it once
again upon the completion of a year. It is also
permissible to calculate Zakah due on one's
wages and give it along with his other kinds of
|Fourth: Zakah on usurious deposits,
securities and ill-gotten money|
As for usurious securities
and deposits, Zakah is due on their original
values with a rate of 2.5%. No Zakah is due on
the usurious interests because they are
ill-gotten money that a Muslim should avoid.
Such money should be spent in charitable
channels and for Muslims' public interests
except for building mosques or printing Qur'anic
texts. As for looted or stolen money, no Zakah
is due on it, but it should be returned to its
|Fifth: The lunar calendar|
The lunar calendar should be
taken into consideration when calculating Zakah
money. The Fatwa Committee recommends that
individuals, companies and financial
institutions should adopt the lunar calendar as
a basis for preparing the balance sheet, or at
least that they should prepare a special Zakah
balance sheet according to the lunar calendar.
If there is difficulty in this matter and the
balance sheet was prepared according to the
solar calendar, the difference between the two
calendars should be taken into account. As the
solar calendar is little longer than the lunar
one, rate of Zakah will be approximately 2.577%.
|Sixth: Investment debt and Zakah|
If a debtor uses debt in
trade purposes, it is not to be calculated as
part of money on which Zakah is due. If it is
used in buying houses or machines for
possession, the committee pays the Jurists'
attention that the issue should be carefully
studied. That is because there is a legal
opinion that debt is a reason for not paying
Zakah on its equivalent value. Thus, many
people, companies and organizations will not
give Zakah under this pretext although they
achieve good profits.
The committee holds the
opinion adopted by jurists who believe that if
the debt is postponed, it is not an excuse for
not paying Zakah. Yet, the whole affair needs
The committee recommends that
next conferences resume their study of the
issues that may arise in this regard which have
not been studied by this conference.
Finally, the committee calls
for paying attention to the importance of Zakah
and its rules in all economic and social