Zakah on Shares Held for Trade
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The second and third questions from Fatwa No. ( 18690 )
Q2: If I own shares in one of the joint-stock companies outside the Kingdom, for example in America , is zakah obligatory on me on the profits, or on the profits and the capital?
A2: Zakah is obligatory on shares held for trade on both the capital and the profits after the completion of the lunar year, and the lunar year for the profits is the same as the lunar year for the original capital. However, if the shares are held for investment and not offered for sale, then zakah is due only on the profits.
Q3: When paying zakah, I try my best to be precise, but there may be a shortfall in the zakah without intention. Does the charity I give other than zakah cover the shortfall in the zakah if there is one?
A3: It is obligatory for a Muslim to strive to be precise in paying zakah, and its amounts are, praise be to Allah, defined and clear. However, if a shortfall occurs
in paying zakah without intention after exerting one's utmost effort and ability, then the charity that a person gives voluntarily completes the shortfall in the obligatory zakah, as indicated by the established Sunnah of the Messenger of Allah (peace and blessings be upon him). And success is from Allah, and may Allah send prayers and blessings upon our Prophet Muhammad, his family, and his Companions.
Q2: If I own shares in one of the joint-stock companies outside the Kingdom, for example in America , is zakah obligatory on me on the profits, or on the profits and the capital?
A2: Zakah is obligatory on shares held for trade on both the capital and the profits after the completion of the lunar year, and the lunar year for the profits is the same as the lunar year for the original capital. However, if the shares are held for investment and not offered for sale, then zakah is due only on the profits.
Q3: When paying zakah, I try my best to be precise, but there may be a shortfall in the zakah without intention. Does the charity I give other than zakah cover the shortfall in the zakah if there is one?
A3: It is obligatory for a Muslim to strive to be precise in paying zakah, and its amounts are, praise be to Allah, defined and clear. However, if a shortfall occurs
in paying zakah without intention after exerting one's utmost effort and ability, then the charity that a person gives voluntarily completes the shortfall in the obligatory zakah, as indicated by the established Sunnah of the Messenger of Allah (peace and blessings be upon him). 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.