How is zakah paid on land prepared for trade?

Question : May Allah preserve you. This message received by fax says: The questioner asks, “Honorable Shaykh, a company consisting of three individuals purchased plots of land for the purpose of trading and earning profit from selling them. I ask Honorable Shaykh Muhammad for the method of paying zakah on the land purchased for trade?”

Answer : Zakah is obligatory on land purchased for the purpose of trading. Its value is assessed at the time zakah becomes due based on what it is worth, whether that is the same as the purchase price, less, or more. If he bought land for one hundred thousand riyals and it was worth two hundred thousand when zakah became due, he owes zakah on two hundred thousand. If he bought it for two hundred thousand and it was worth one hundred thousand when zakah became due, he owes only zakah on one hundred thousand.