The money in a mudarabah partnership and who pays zakah on it?
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Fatwa No. ( 12618 )
Q: I have a sum of money amounting to fifteen thousand riyals (15,000 riyals) which I gave to a man to trade with, on the condition that he receives half of the profit. Is zakah due on this money? And which of the two pays zakah: the capital, the profit, or both? And if zakah is due on the capital, and the capital has been used to purchase tangible goods for trade, such as carpets, furniture, and the like, what is the ruling in this case?
A: Zakah is obligatory on the aforementioned money intended for trade when a lunar year has passed over it. The capital is to be zakaed together with the profit at the completion of the year. If the money has been used to purchase goods for trade, their value is estimated at the completion of the year at what they are worth at that time, and zakah is paid at the rate of two and a half percent (2.5%) of the total amount of the money including the profits.
And success is from Allah, and may Allah send prayers and blessings upon our Prophet Muhammad, his family, and his companions.
Q: I have a sum of money amounting to fifteen thousand riyals (15,000 riyals) which I gave to a man to trade with, on the condition that he receives half of the profit. Is zakah due on this money? And which of the two pays zakah: the capital, the profit, or both? And if zakah is due on the capital, and the capital has been used to purchase tangible goods for trade, such as carpets, furniture, and the like, what is the ruling in this case?
A: Zakah is obligatory on the aforementioned money intended for trade when a lunar year has passed over it. The capital is to be zakaed together with the profit at the completion of the year. If the money has been used to purchase goods for trade, their value is estimated at the completion of the year at what they are worth at that time, and zakah is paid at the rate of two and a half percent (2.5%) of the total amount of the money including the profits.
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.