Zakah on a company's inventory consisting of items whose value generally depreciates over time
Machine translationRead the Arabic original
Q2: The company's inventory consists of items whose value generally depreciates over time, such as cars. Previously, this inventory was fully revalued at the end of the year for the purpose of calculating zakah, by simply adding 5% to its cost price. We note that we set aside from the annual profits amounts equivalent to the decrease in value resulting from stagnation.
Is it obligatory to value this inventory according to the prevailing market price on the date of closing the accounts? And must the reserve set aside from the profits—that is, the profits were reduced accordingly—be returned to the profits for the purpose of calculating zakah, or not?
A2: It is obligatory to value this inventory at the completion of the lunar year according to the market price, whether it has increased or decreased. This is the justice that does not harm the owner, nor does it wrong the poor and others who are entitled to zakah. There is no need to add five percent, nor to set aside any amount from the profits to cover the decrease.
Is it obligatory to value this inventory according to the prevailing market price on the date of closing the accounts? And must the reserve set aside from the profits—that is, the profits were reduced accordingly—be returned to the profits for the purpose of calculating zakah, or not?
A2: It is obligatory to value this inventory at the completion of the lunar year according to the market price, whether it has increased or decreased. This is the justice that does not harm the owner, nor does it wrong the poor and others who are entitled to zakah. There is no need to add five percent, nor to set aside any amount from the profits to cover the decrease.
Source
www.alifta.gov.sa
The Arabic text is copied verbatim from the original source, without any edits.