Zakah on Shares and Distressed Real Estate
Machine translationRead the Arabic original
The questioner:
May Allah reward you. Another question asks: Is there zakah on shares, and how are shares subject to zakah?
The Shaykh:
Shares fall into two categories. Shares in real estate intended for sale, or shares in assets held for sale to seek profit, are valued at the end of the lunar year and zakah is paid on their value. The second type is commercial shares intended for profit. These are also subject to zakah. The shares are valued at the end of the lunar year and zakah is paid on them, just as one would with goods prepared for sale. These shares are prepared for sale, so when the lunar year completes, he values them at their worth and pays zakah on them.
The questioner:
May Allah reward you. How is zakah paid on distressed real estate or distressed investments in real estate, may Allah reward you?
The Shaykh:
If he is unable to access them, meaning if he requests them he cannot obtain them, then the zakah is delayed until he takes possession of them, values them, and is able to access them. He then starts a new lunar year from the time of taking possession. However, if he is able to take possession of them but he leaves them and does not request them, then they are subject to zakah for every year that passes, because they are considered in his possession. If he owes zakah for five years and did not pay it, and then Allah the Exalted accepts his repentance and he wants to pay the zakah in this year, how is that done?
The questioner:
How is that done in this year?
The Shaykh:
Yes, he pays zakah for all the years that have passed, because it is a debt in his liability. He pays it off and hastens to clear his debts and relieve his liability of the zakah that is in his liability, even if it is for several years.
May Allah reward you. Another question asks: Is there zakah on shares, and how are shares subject to zakah?
The Shaykh:
Shares fall into two categories. Shares in real estate intended for sale, or shares in assets held for sale to seek profit, are valued at the end of the lunar year and zakah is paid on their value. The second type is commercial shares intended for profit. These are also subject to zakah. The shares are valued at the end of the lunar year and zakah is paid on them, just as one would with goods prepared for sale. These shares are prepared for sale, so when the lunar year completes, he values them at their worth and pays zakah on them.
The questioner:
May Allah reward you. How is zakah paid on distressed real estate or distressed investments in real estate, may Allah reward you?
The Shaykh:
If he is unable to access them, meaning if he requests them he cannot obtain them, then the zakah is delayed until he takes possession of them, values them, and is able to access them. He then starts a new lunar year from the time of taking possession. However, if he is able to take possession of them but he leaves them and does not request them, then they are subject to zakah for every year that passes, because they are considered in his possession. If he owes zakah for five years and did not pay it, and then Allah the Exalted accepts his repentance and he wants to pay the zakah in this year, how is that done?
The questioner:
How is that done in this year?
The Shaykh:
Yes, he pays zakah for all the years that have passed, because it is a debt in his liability. He pays it off and hastens to clear his debts and relieve his liability of the zakah that is in his liability, even if it is for several years.
Source
نور على الدرب - الفوزان - 03/181 — archive.org (6:57)
The Arabic text is a machine transcription of the audio recording.