A contractor who receives his dues in installments: how does he pay zakah?
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Q1: I am a man who takes on some contracts, meaning the construction of residential or commercial buildings on an installment basis. In other words, I take the building at a price per meter, for example, five hundred riyals (500), with a down payment of ten thousand riyals or more, or less. If the building is, for example, 20 meters long and 15 meters wide, the total area is 300 meters, multiplied by 500, making the total amount 150,000 riyals. Of this, ten thousand is a down payment, for example, and 140,000 is paid in monthly installments, with the value of the installment being two thousand riyals (2000) or less or more. Are these contracts permissible? Knowing that they are subject to loss and profit. And if they are permissible, is there zakah in them? Knowing that the amount paid over twelve months is, for example, 24,000, which has not reached the lunar year, whereas the remaining amount owed by the debtor undoubtedly reaches the lunar year. If there is zakah in it, how is it paid?
A1: The transaction you are asking about is a valid transaction, as the original ruling for contracts is validity unless there is something that necessitates invalidity. As for zakah, it becomes obligatory on the amount received if the lunar year has passed over it. As for the deferred amount, if the person owing the amount is wealthy and willing to pay, zakah becomes obligatory on it at the end of each lunar year. If he is poor or delaying payment, there is no zakah until the amount is received, in which case zakah is paid for one year.
Q2: I had a sedan car, model 93, and my brother had a Toyota truck, model 89. We exchanged the cars, and he gave me an additional amount of thirty-five thousand riyals, paid in monthly installments, one thousand five hundred riyals (1500) each month. Is this permissible or not? And if it is permissible, do I pay zakah on the installment amount? Knowing that if I receive the amount, the lunar year does not pass over it, whereas what remains with the debtor undoubtedly has the lunar year passing over it?
A2: The sale you are asking about is a valid sale, and it has no effect that one of the two exchanges consists of a car and money. As for zakah, it is as mentioned in the first answer.
A1: The transaction you are asking about is a valid transaction, as the original ruling for contracts is validity unless there is something that necessitates invalidity. As for zakah, it becomes obligatory on the amount received if the lunar year has passed over it. As for the deferred amount, if the person owing the amount is wealthy and willing to pay, zakah becomes obligatory on it at the end of each lunar year. If he is poor or delaying payment, there is no zakah until the amount is received, in which case zakah is paid for one year.
Q2: I had a sedan car, model 93, and my brother had a Toyota truck, model 89. We exchanged the cars, and he gave me an additional amount of thirty-five thousand riyals, paid in monthly installments, one thousand five hundred riyals (1500) each month. Is this permissible or not? And if it is permissible, do I pay zakah on the installment amount? Knowing that if I receive the amount, the lunar year does not pass over it, whereas what remains with the debtor undoubtedly has the lunar year passing over it?
A2: The sale you are asking about is a valid sale, and it has no effect that one of the two exchanges consists of a car and money. As for zakah, it is as mentioned in the first answer.
Source
www.alifta.gov.sa
The Arabic text is copied verbatim from the original source, without any edits.