He bought land for trade and allowed orphans to farm it; does he have to pay zakah on it?
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The second question of Fatwa No. ( 21717 )
Q2: I have a small piece of land, which I bought with the intention of trading it. Orphans are currently farming it, and I have not taken anything from them for their farming. Is zakah on wealth obligatory on it? If zakah on wealth is due, is the value assessed at the time of purchase or according to each year when the zakah is paid out? And does the situation change if I change my intention from trading it to building a house on it?
A2: If you intend this land for trade, it is from trade goods, so zakah is obligatory on it. Accordingly, you must assess its value when the lunar year (hawl) is completed from the time you intended it for trade. Whatever value it reaches, you pay its zakah, which is one-quarter of a tenth, if its value reaches the nisab. If you change your intention from selling it and want to build a residence on it, there is no zakah on it, because it is not from trade goods in this case. And success is from Allah, and may Allah send prayers and blessings upon our Prophet Muhammad, his family, and his Companions.
Q2: I have a small piece of land, which I bought with the intention of trading it. Orphans are currently farming it, and I have not taken anything from them for their farming. Is zakah on wealth obligatory on it? If zakah on wealth is due, is the value assessed at the time of purchase or according to each year when the zakah is paid out? And does the situation change if I change my intention from trading it to building a house on it?
A2: If you intend this land for trade, it is from trade goods, so zakah is obligatory on it. Accordingly, you must assess its value when the lunar year (hawl) is completed from the time you intended it for trade. Whatever value it reaches, you pay its zakah, which is one-quarter of a tenth, if its value reaches the nisab. If you change your intention from selling it and want to build a residence on it, there is no zakah on it, because it is not from trade goods in this case. 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.