Zakah on Shares in an Electricity Company
Machine translationRead the Arabic original
The questioner:
He says: Honorable Shaykh, may Allah grant you success. If a person has shares, for example, in an electricity company, and he has not intended to sell and trade them, but rather only takes their profits every year, how does he pay zakah? Does he pay zakah on the value of the shares and the profits, or on the profits only?
The Shaykh:
As for shares that one does not intend to sell, but intends only for investment, and they are fixed shares, not intended for sale, he pays zakah on their yield only.
The questioner:
He says: And if they are prepared for sale and trade, does he…
The Shaykh:
…pay zakah on them and on their value, meaning that he appraises them at what they are worth, adds the yield to that, and pays zakah on all of it, the appraised value together with the yield.
He says: Honorable Shaykh, may Allah grant you success. If a person has shares, for example, in an electricity company, and he has not intended to sell and trade them, but rather only takes their profits every year, how does he pay zakah? Does he pay zakah on the value of the shares and the profits, or on the profits only?
The Shaykh:
As for shares that one does not intend to sell, but intends only for investment, and they are fixed shares, not intended for sale, he pays zakah on their yield only.
The questioner:
He says: And if they are prepared for sale and trade, does he…
The Shaykh:
…pay zakah on them and on their value, meaning that he appraises them at what they are worth, adds the yield to that, and pays zakah on all of it, the appraised value together with the yield.
Source
قناة «العلامة الدكتور صالح الفوزان»، 141/136 شرح زاد المستقنع/ صالح الفوزان — youtube.com (55:46)
The Arabic text is a machine transcription of the audio recording.