How are the shares of individuals in joint-stock companies subject to zakah?
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Q: A company purchases land and opens temporary share subscriptions in its capital for citizens, who each contribute according to their ability to pay for the capital of this land. The company then sells the land and liquidates the capital and profit for the shareholders upon sale. Does the company have the right to deduct the zakah on these shares and transfer it to the Zakat, Tax and Customs Authority, along with what the company pays the Authority on the results of its activities and assets? It is known that the company does not have a power of attorney from the shareholders to pay the zakah on their behalf, and some of them do not agree to this. Or should the payment of zakah be left to the shareholder himself?
A: If the shareholders appoint the company to pay the zakah on their behalf, that is permissible, and the company pays it in whatever manner it deems sufficient to clear their liability. If they do not appoint the company to do so, then each shareholder pays the zakah on his share every year that passes, along with his profit, by asking the company for the value of his share each year at the time zakah becomes obligatory.
A: If the shareholders appoint the company to pay the zakah on their behalf, that is permissible, and the company pays it in whatever manner it deems sufficient to clear their liability. If they do not appoint the company to do so, then each shareholder pays the zakah on his share every year that passes, along with his profit, by asking the company for the value of his share each year at the time zakah becomes obligatory.
Source
www.alifta.gov.sa
The Arabic text is copied verbatim from the original source, without any edits.