Zakah on the project consisting of cattle or on the net output thereof
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Fatwa number ( 19989 )
Q: I hope you will kindly answer the following two questions: First: I have an investment project for milk production. Is zakah obligatory on the project consisting of the cattle, or on the net output thereof, as is the case with real estate and car investments? Second: How do we calculate the zakah of agricultural joint-stock companies for agricultural production, milk, and its derivatives, given that their shares are traded on the market? May Allah guide you, reward you, and keep your steps steady.
A: Zakah is obligatory on the money obtained from the project’s yield if it reaches the nisab and a lunar year has passed since its acquisition. The amount of zakah is:
one quarter of a tenth, i.e., two and a half percent. Likewise, zakah is obligatory on the yield of shares in agricultural companies, milk companies, and similar entities if they reach the nisab and a lunar year has passed, provided they are held for investment purposes. However, if the shares are held for sale, zakah is obligatory on both the shares and their profits. And success is from Allah, and may Allah send prayers and blessings upon our Prophet Muhammad, his family, and his Companions.
Q: I hope you will kindly answer the following two questions: First: I have an investment project for milk production. Is zakah obligatory on the project consisting of the cattle, or on the net output thereof, as is the case with real estate and car investments? Second: How do we calculate the zakah of agricultural joint-stock companies for agricultural production, milk, and its derivatives, given that their shares are traded on the market? May Allah guide you, reward you, and keep your steps steady.
A: Zakah is obligatory on the money obtained from the project’s yield if it reaches the nisab and a lunar year has passed since its acquisition. The amount of zakah is:
one quarter of a tenth, i.e., two and a half percent. Likewise, zakah is obligatory on the yield of shares in agricultural companies, milk companies, and similar entities if they reach the nisab and a lunar year has passed, provided they are held for investment purposes. However, if the shares are held for sale, zakah is obligatory on both the shares and their profits. And success is from Allah, and may Allah send prayers and blessings upon our Prophet Muhammad, his family, and his Companions.
Source
www.alifta.gov.sa
The Arabic text is copied verbatim from the original source, without any edits.