Zakah on Shares
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Fatwa number ( 17852 )
Q: I have an account with the Islamic Company for Gulf Investment, the offices of His Highness Muhammad al-Faisal in industrial mudarabah. The company collects funds from depositors and builds factories in Muslim countries, or buys ready-made factories, or invests in existing factories to serve Muslims, and gives us annual profits from the profits of these factories. The question is: Do I pay zakah annually on the capital I paid to the company, or on the profits I receive annually , and what is the rate of zakah we pay? We are ready to carry out the commands of the pure Shari'ah, whatever they may be, to please Allah (Mighty and Majestic) and to be saved from His punishment on the Day of Resurrection. May Allah reward you with good.
A: It is obligatory for you to pay zakah on the profits from the aforementioned shares that reach you, provided they reach the nisab and a lunar year has passed since their acquisition. What you spent
before the completion of the lunar year is not subject to zakah, and you are also not required to pay zakah on the principal value of the shares; because they have become fixed assets of the company in the aforementioned factories intended for operation and utilization, and are no longer for sale. And success is from Allah, and may Allah send prayers and blessings upon our Prophet Muhammad, his family, and his Companions.
Q: I have an account with the Islamic Company for Gulf Investment, the offices of His Highness Muhammad al-Faisal in industrial mudarabah. The company collects funds from depositors and builds factories in Muslim countries, or buys ready-made factories, or invests in existing factories to serve Muslims, and gives us annual profits from the profits of these factories. The question is: Do I pay zakah annually on the capital I paid to the company, or on the profits I receive annually , and what is the rate of zakah we pay? We are ready to carry out the commands of the pure Shari'ah, whatever they may be, to please Allah (Mighty and Majestic) and to be saved from His punishment on the Day of Resurrection. May Allah reward you with good.
A: It is obligatory for you to pay zakah on the profits from the aforementioned shares that reach you, provided they reach the nisab and a lunar year has passed since their acquisition. What you spent
before the completion of the lunar year is not subject to zakah, and you are also not required to pay zakah on the principal value of the shares; because they have become fixed assets of the company in the aforementioned factories intended for operation and utilization, and are no longer for sale. 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.