What a company spends from its profits to settle previous liabilities: is it subject to zakah?
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Q2: Some companies spend certain expenses that pertain to the previous year. Are these expenses deducted from the profits of the year in which they were spent, rather than from the profits of the previous year from which they were not previously deducted?
A2: Amounts spent from the profits of a subsequent year to settle the debts of the company or establishment for a previous year are not included in the zakah base for the year in which they were spent, provided that the expenditure complies with the regulatory procedures followed in this regard and that it occurs before the completion of the lunar year.
A2: Amounts spent from the profits of a subsequent year to settle the debts of the company or establishment for a previous year are not included in the zakah base for the year in which they were spent, provided that the expenditure complies with the regulatory procedures followed in this regard and that it occurs before the completion of the lunar year.
Source
www.alifta.gov.sa
The Arabic text is copied verbatim from the original source, without any edits.