Zakah on Shares in Companies
Machine translationRead the Arabic original
Question:
If a person holds shares in one of the companies, does he pay zakah on the profit only, or on the value of the share when he bought it, or on its value at the time of sale? Please inform us, may Allah reward you.
Answer:
If the investment is for investment purposes, such as a share in land that is cultivated, or a share in taxi cars, there is no zakah on it. But if the investment is for sale—shares for sale, land for sale, cars for sale, a building for sale, or the like—then zakah is due on the shares. Every year, you pay zakah on the value of the shares at the time the lunar year completes, along with their profit. Yes.
The presenter:
May Allah reward you,
If a person holds shares in one of the companies, does he pay zakah on the profit only, or on the value of the share when he bought it, or on its value at the time of sale? Please inform us, may Allah reward you.
Answer:
If the investment is for investment purposes, such as a share in land that is cultivated, or a share in taxi cars, there is no zakah on it. But if the investment is for sale—shares for sale, land for sale, cars for sale, a building for sale, or the like—then zakah is due on the shares. Every year, you pay zakah on the value of the shares at the time the lunar year completes, along with their profit. Yes.
The presenter:
May Allah reward you,
Source
فتاوى الحج ١٤١٠ هـ - ١٤ — archive.org (18:59)
The Arabic text is a machine transcription of the audio recording.