Zakah on the funds of commercial companies located in different areas owned by a single owner
Machine translationRead the Arabic original
Fatwa No. ( 19758 )
Q: I would like to seek your ruling regarding this case, which I set out before you. By the vast grace of Allah, I own several commercial companies (trading goods) in various parts of the Kingdom of Saudi Arabia . The results of these companies vary from year to year; some make a profit and others incur a loss. I do not know how to pay zakah on these companies. The question is: Is it forbidden for me to combine these companies, including both the profitable and the loss-making ones, and then pay zakah on the total amount? Or am I required to separate these funds such that I must pay zakah on the funds of each company individually and not combine them? Please give us a ruling, may Allah reward you, and may Allah reward you with the best reward.
A: It is obligatory for you to pay zakah on everything you obtain from all your companies by combining them together, and to pay one-quarter of a tenth of that if a lunar year has passed. Likewise, you must appraise your trading goods at their value if a lunar year has passed on the prices at which you bought them, and pay one-quarter of a tenth of the appraised value if these goods are intended for sale. And success is from Allah, and may Allah send prayers and blessings upon our Prophet Muhammad, his family, and his Companions.
This is based on what they are worth when the lunar year of possession has passed on their assessed value at the time you bought them, and you must pay out one-quarter of one-tenth of the assessed value if these goods are intended 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 would like to seek your ruling regarding this case, which I set out before you. By the vast grace of Allah, I own several commercial companies (trading goods) in various parts of the Kingdom of Saudi Arabia . The results of these companies vary from year to year; some make a profit and others incur a loss. I do not know how to pay zakah on these companies. The question is: Is it forbidden for me to combine these companies, including both the profitable and the loss-making ones, and then pay zakah on the total amount? Or am I required to separate these funds such that I must pay zakah on the funds of each company individually and not combine them? Please give us a ruling, may Allah reward you, and may Allah reward you with the best reward.
A: It is obligatory for you to pay zakah on everything you obtain from all your companies by combining them together, and to pay one-quarter of a tenth of that if a lunar year has passed. Likewise, you must appraise your trading goods at their value if a lunar year has passed on the prices at which you bought them, and pay one-quarter of a tenth of the appraised value if these goods are intended for sale. And success is from Allah, and may Allah send prayers and blessings upon our Prophet Muhammad, his family, and his Companions.
This is based on what they are worth when the lunar year of possession has passed on their assessed value at the time you bought them, and you must pay out one-quarter of one-tenth of the assessed value if these goods are intended 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.