Zakah on Shares in Mudarabah and Murabahah
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Fatwa No. ( 19382 )
Q: I have an account with Al-Barakah Investment and Development Company (a member of the Dallah Al-Barakah Group), and the company is concerned with Islamic investments (mudarabah, leasing, murabahah, etc.), whereby it collects funds and invests them within the Kingdom and in Islamic countries in agricultural, industrial, real estate, and commercial projects to serve Islam and Muslims, and we are given annual profits through these contributions. 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 that I must pay?
A: Regarding shares in profit-sharing and cost-plus sales, zakah is due on the capital and the profits when the lunar year of possession is completed on the capital. As for shares in agricultural, real estate, and industrial companies, it is obligatory to pay zakah
on the profits if they reach the minimum threshold for zakah on their own or when combined with other assets, and a lunar year of possession has passed over them. The amount of zakah is one-quarter of a tenth, that is, 2.5% (two and a half percent). As for the capital, zakah is not obligatory on it if it is not intended for sale. However, if it is intended for sale, zakah becomes obligatory on it when the lunar year of possession is completed, along with its profits, just like other trade goods. If the agricultural companies produce grains, dates, or grapes, then the prescribed zakah becomes obligatory on the produce if the yield of each type reaches five wasqs or more. 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 Al-Barakah Investment and Development Company (a member of the Dallah Al-Barakah Group), and the company is concerned with Islamic investments (mudarabah, leasing, murabahah, etc.), whereby it collects funds and invests them within the Kingdom and in Islamic countries in agricultural, industrial, real estate, and commercial projects to serve Islam and Muslims, and we are given annual profits through these contributions. 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 that I must pay?
A: Regarding shares in profit-sharing and cost-plus sales, zakah is due on the capital and the profits when the lunar year of possession is completed on the capital. As for shares in agricultural, real estate, and industrial companies, it is obligatory to pay zakah
on the profits if they reach the minimum threshold for zakah on their own or when combined with other assets, and a lunar year of possession has passed over them. The amount of zakah is one-quarter of a tenth, that is, 2.5% (two and a half percent). As for the capital, zakah is not obligatory on it if it is not intended for sale. However, if it is intended for sale, zakah becomes obligatory on it when the lunar year of possession is completed, along with its profits, just like other trade goods. If the agricultural companies produce grains, dates, or grapes, then the prescribed zakah becomes obligatory on the produce if the yield of each type reaches five wasqs or more. 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.