Fish Production Company
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Fatwa No. ( 20521 )
Q: There is a company specializing in the farming of shrimp. It purchased a plot of land measuring one million square meters and built eighty shrimp ponds on it. It installed electricity, exhaust fans, and other necessities for farming. Then it began buying young shrimp and placing them in these ponds, assigning workers to supervise them and provide them with the necessary food and medicine. After a number of months have passed, we sell them and buy other young shrimp, and so on. The cost of building the ponds, including the purchase of the land, amounted to 13 million riyals. The cost of purchasing the shrimp and spending on them in the first year amounted to 5 million riyals, including workers' salaries, administrative expenses, and so forth. The company's losses in the first year amounted to 2 million riyals. Is there any zakah due on this company, and what is its amount?
A: If a lunar year has passed since you began this trade, it is obligatory for you to count the shrimp you have that are intended for trade, and then pay zakah on trade goods at their value at the time zakah becomes due, which is the completion of the lunar year, whether this price equals their price at the time of purchase, is less, or is more. It is obligatory to pay one-quarter of a tenth, i.e., the equivalent of 2.5%. As for the land and the ponds and equipment attached to it, there is no zakah on them because they are intended for use, not for sale.
And success is from Allah, and may Allah send prayers and blessings upon our Prophet Muhammad and his family and his Companions.
Q: There is a company specializing in the farming of shrimp. It purchased a plot of land measuring one million square meters and built eighty shrimp ponds on it. It installed electricity, exhaust fans, and other necessities for farming. Then it began buying young shrimp and placing them in these ponds, assigning workers to supervise them and provide them with the necessary food and medicine. After a number of months have passed, we sell them and buy other young shrimp, and so on. The cost of building the ponds, including the purchase of the land, amounted to 13 million riyals. The cost of purchasing the shrimp and spending on them in the first year amounted to 5 million riyals, including workers' salaries, administrative expenses, and so forth. The company's losses in the first year amounted to 2 million riyals. Is there any zakah due on this company, and what is its amount?
A: If a lunar year has passed since you began this trade, it is obligatory for you to count the shrimp you have that are intended for trade, and then pay zakah on trade goods at their value at the time zakah becomes due, which is the completion of the lunar year, whether this price equals their price at the time of purchase, is less, or is more. It is obligatory to pay one-quarter of a tenth, i.e., the equivalent of 2.5%. As for the land and the ponds and equipment attached to it, there is no zakah on them because they are intended for use, not for sale.
And success is from Allah, and may Allah send prayers and blessings upon our Prophet Muhammad and his family and his Companions.
Source
www.alifta.gov.sa
The Arabic text is copied verbatim from the original source, without any edits.