Zakah on the Income of the Telecommunications Company
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Praise be to Allah alone, and blessings and peace be upon the one after whom there is no prophet. After that:
The Permanent Committee for Scholarly Research and Ifta has reviewed what was sent to His Eminence the Grand Mufti from His Excellency the President of the Saudi Telecommunications Company, and referred to the Committee by the General Secretariat of the Council of Senior Scholars with number (1471) and date 18/11/1429 AH. The questioner asked a question, the text of which is as follows: "Out of the company management's concern for preserving the shareholders' funds and their desire to pay the obligatory zakah prescribed by the Shari'ah, we would like to inquire from Your Eminence: If the company calculates the zakah base based on the established Shari'ah rules, by calculating all assets representing the shareholders' equity on the day of zakah calculation and deducting the net fixed assets, and it is then found that this base is less than the company's annual net profit, is it obligatory for the company to pay zakah on the base or on the annual profit? It is known that these profits were realized by the company over the course of the year and are used in its various activities, such as purchasing assets or expenses. We hope you will inform us of the Shari'ah validity of the procedure followed by the Saudi Telecommunications Company in calculating the zakah due on it. May Allah preserve you."
After the Committee studied the question, it answered that the revenues of the Telecommunications Company
from call charges and the like, which are spent on assets and expenses, are not subject to zakah if that is before the completion of a lunar year; because the type of rent is not subject to zakah until a lunar year has passed over it; due to the generality of the saying of the Prophet (peace and blessings be upon him):Sunan Ibn Majah 1792Hasan (Darussalam) . It was narrated by Abu Dawud , and Ibn Majah .
The Permanent Committee for Scholarly Research and Ifta has reviewed what was sent to His Eminence the Grand Mufti from His Excellency the President of the Saudi Telecommunications Company, and referred to the Committee by the General Secretariat of the Council of Senior Scholars with number (1471) and date 18/11/1429 AH. The questioner asked a question, the text of which is as follows: "Out of the company management's concern for preserving the shareholders' funds and their desire to pay the obligatory zakah prescribed by the Shari'ah, we would like to inquire from Your Eminence: If the company calculates the zakah base based on the established Shari'ah rules, by calculating all assets representing the shareholders' equity on the day of zakah calculation and deducting the net fixed assets, and it is then found that this base is less than the company's annual net profit, is it obligatory for the company to pay zakah on the base or on the annual profit? It is known that these profits were realized by the company over the course of the year and are used in its various activities, such as purchasing assets or expenses. We hope you will inform us of the Shari'ah validity of the procedure followed by the Saudi Telecommunications Company in calculating the zakah due on it. May Allah preserve you."
After the Committee studied the question, it answered that the revenues of the Telecommunications Company
from call charges and the like, which are spent on assets and expenses, are not subject to zakah if that is before the completion of a lunar year; because the type of rent is not subject to zakah until a lunar year has passed over it; due to the generality of the saying of the Prophet (peace and blessings be upon him):
There is not Zakat on wealth until Hawl (one year) has passed.
لا زكاة في مال حتى يحول عليه الحول
Source
www.alifta.gov.sa
The Arabic text is copied verbatim from the original source, without any edits.