Fixed assets: such as
machinery, buildings, trucks and equipment.
All fixed assets are not liable to Zakah.
Intention is the
criterion of considering properties as
commercial commodities or not. If a person
purchases a car for personal use, but may
sell it if it sells good, it should not be
counted as a commercial commodity. But when
a person purchases a number of cars for
trade, then uses one of them, the used car
will also be liable to Zakah as a commercial
The value of commercial
commodities should be estimated according to
the wholesale price, whether it will be sold
by retail or by wholesale. This is the view
approved by the Juristic Academy in Mecca.
A merchant should
estimate the value of his commercial
commodities according to the current market
rate, whether it is higher or lower than the
sale price. The sale price meant here is the
price when Zakah falls due.
If the company pays Zakah
on its shares, the shareholder is not
obliged to pay Zakah on his shares to avoid
double payment of Zakah. Otherwise, a
shareholder will be obliged to pay Zakah on
his shares as follows: * If the shareholder
exploits his shares in trade, the amount of
Zakah due on his shares would be 2.5%,
according to the market value at the time
Zakah becomes due. * However, if shares are
invested to obtain annual revenues, Zakah is
paid in the following way: a) If the
shareholder managed to examine the accounts
of the company and know the amount of Zakah
due on his shares, he would have to pay 2.5%
as Zakah on this basis. b) If he does not
have knowledge of the company accounts, he
may simply add the share revenues to the
total sum of his property counted for Zakah
and pay a rate of 2.5% as Zakah after the
lapse of a full year since the wealth has
reached the allotted Nisab.
Though dealing in
securities is not lawful, Zakah is due on
their face value, which is to be added to
other kinds of property, after reaching the
Nisab and the lapse of a full year. The
payable amount of Zakah is 2.5 %.
All kinds of debts
whether owed or due should be included under
the item of debts.
- 1 234567 891011|