Zakah on Wealth and Its Increase
Machine translationRead the Arabic original
Fatwa No. ( 20259 )
Q: I have an investment account with the Islamic Company for Gulf Investment. The Dar al-Mal al-Islami Group contracted with the private offices of His Royal Highness Prince Muhammad al-Faisal . The company adds the profits to my account every year. My question is: Do I pay zakah on the principal amount I deposited in my account, i.e., the original capital? Or do I pay zakah on the annual profits without the basic capital when the lunar year completes? Or do I pay zakah on the deposited capital plus the profits added to the capital when the lunar year completes? I am informed that the officials in the aforementioned companies stated that zakah must be paid from the annual profits without the basic capital. I ask you, Your Eminence, for a clear and comprehensive answer. May Allah reward you with good.
A: It is obligatory for you to pay zakah on the capital and its profit if the lunar year completes on the capital, and the profit follows the lunar year of the capital.
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 investment account with the Islamic Company for Gulf Investment. The Dar al-Mal al-Islami Group contracted with the private offices of His Royal Highness Prince Muhammad al-Faisal . The company adds the profits to my account every year. My question is: Do I pay zakah on the principal amount I deposited in my account, i.e., the original capital? Or do I pay zakah on the annual profits without the basic capital when the lunar year completes? Or do I pay zakah on the deposited capital plus the profits added to the capital when the lunar year completes? I am informed that the officials in the aforementioned companies stated that zakah must be paid from the annual profits without the basic capital. I ask you, Your Eminence, for a clear and comprehensive answer. May Allah reward you with good.
A: It is obligatory for you to pay zakah on the capital and its profit if the lunar year completes on the capital, and the profit follows the lunar year of the capital.
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.