Zakat on Shareholdings
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Fatwa No. ( 4098 )
Q: We invested 300,000 (three hundred thousand) riyals in a shareholding on 16/2/1396 AH, and its profits amounted to 534,000 (five hundred and thirty-four thousand) riyals. We received 350,000 of the aforementioned amount on 13/5/1401 AH, and the remainder is still with the transfer agent. We ask you what is obligatory to pay in zakat from the first date to the second? Is zakat permissible on the capital only, or on the capital and the profits?
A: Zakat is obligatory on the capital and the profits if the lunar year has passed
on the capital, and the lunar year for the profits is the same as that of the capital. It is obligatory to pay the zakat for all the past years, each year according to its value. As for the remainder, its owner must pay its zakat for each year after receiving it. If he pays it before receiving it, it is sufficient, and he earns the reward for hastening. And success is from Allah, and may Allah send prayers and blessings upon our Prophet Muhammad, his family, and his Companions.
Q: We invested 300,000 (three hundred thousand) riyals in a shareholding on 16/2/1396 AH, and its profits amounted to 534,000 (five hundred and thirty-four thousand) riyals. We received 350,000 of the aforementioned amount on 13/5/1401 AH, and the remainder is still with the transfer agent. We ask you what is obligatory to pay in zakat from the first date to the second? Is zakat permissible on the capital only, or on the capital and the profits?
A: Zakat is obligatory on the capital and the profits if the lunar year has passed
on the capital, and the lunar year for the profits is the same as that of the capital. It is obligatory to pay the zakat for all the past years, each year according to its value. As for the remainder, its owner must pay its zakat for each year after receiving it. If he pays it before receiving it, it is sufficient, and he earns the reward for hastening. And success is from Allah, and may Allah send prayers and blessings upon our Prophet Muhammad, his family, and his Companions.
Source
www.alifta.gov.sa
The Arabic text is copied verbatim from the original source, without any edits.