Zakah on debts owed to other companies
Machine translationRead the Arabic original
Fatwa number ( 14048 )
Q: We were awarded a project to transport surface mail and parcels by the General Directorate of Post. This project requires 400 vehicles, which we purchased on credit from Al-Humairani Company and Al-Asa Foundation. The value of these debts is (16,000,000 riyals), sixteen million riyals. We have paid (8,000,000 riyals), eight million riyals, in installments, leaving a remaining balance of eight million riyals. We included these debts in the financial statements we submitted to the Zakat and Income Authority, as they require us to provide a certificate from the Zakat and Income Authority every year. To obtain that certificate, we must submit a financial statement for the accounts completed that year. When we requested the certificate from the Zakat and Income Authority, we were surprised to find that the Authority had calculated zakah on the debts owed to us by Al-Humairani Company, Al-Asa Foundation, and other debts. Therefore, we request a written fatwa, may Allah reward you: Is zakah due on these debts owed to us by other companies and institutions from our side,
the debtors, or not? May Allah preserve you, and peace be upon you and the mercy of Allah and His blessings.
A: If the matter is as described in the question, then there is no zakah due on the remaining debts owed to you, which amount to eight million. And success is from Allah, and may Allah send prayers and blessings upon our Prophet Muhammad, his family, and his Companions.
Q: We were awarded a project to transport surface mail and parcels by the General Directorate of Post. This project requires 400 vehicles, which we purchased on credit from Al-Humairani Company and Al-Asa Foundation. The value of these debts is (16,000,000 riyals), sixteen million riyals. We have paid (8,000,000 riyals), eight million riyals, in installments, leaving a remaining balance of eight million riyals. We included these debts in the financial statements we submitted to the Zakat and Income Authority, as they require us to provide a certificate from the Zakat and Income Authority every year. To obtain that certificate, we must submit a financial statement for the accounts completed that year. When we requested the certificate from the Zakat and Income Authority, we were surprised to find that the Authority had calculated zakah on the debts owed to us by Al-Humairani Company, Al-Asa Foundation, and other debts. Therefore, we request a written fatwa, may Allah reward you: Is zakah due on these debts owed to us by other companies and institutions from our side,
the debtors, or not? May Allah preserve you, and peace be upon you and the mercy of Allah and His blessings.
A: If the matter is as described in the question, then there is no zakah due on the remaining debts owed to you, which amount to eight million. 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.