Poultry Companies and the Payment of Zakah
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Q: We are an agricultural company that owns a number of poultry farms , some of which are rented and some are owned. These farms produce three types of agricultural products: (hatching eggs, one-day-old chicks, and broiler chickens), all of which are goods for sale. We hope you will clarify how zakah is calculated in this case and its nisab (minimum threshold), given that there is the original invested capital (the farms and their equipment) and the goods for sale (the chickens and eggs). Please note that the company’s balance sheet shows losses, not profits. Please inform us in writing of what must be paid out, so that it can be presented to the board of partners.
A: The company must, at the end of every lunar year, value all the chickens and the other items mentioned that are prepared for sale, and add their value to the cash it holds. It must then pay zakah on the total amount at the rate of one-quarter of a tenth (2.5 percent). As for the machinery and production equipment, no zakah is due on them.
A: The company must, at the end of every lunar year, value all the chickens and the other items mentioned that are prepared for sale, and add their value to the cash it holds. It must then pay zakah on the total amount at the rate of one-quarter of a tenth (2.5 percent). As for the machinery and production equipment, no zakah is due on them.
Source
www.alifta.gov.sa
The Arabic text is copied verbatim from the original source, without any edits.