Zakat on the Institution, Real Estate, and Date Palms
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The questioner : He says: Honorable Shaykh, may Allah forgive you and benefit us with your knowledge, I am the owner of an institution and real estate, and I do not know how to pay the zakat on this institution and this real estate, so I ask you, may Allah grant you success, for a ruling or clarification on how to pay this zakat. Also, I have a farm with nearly fifty date palms, is there zakat on them? I ask you to benefit me, may Allah benefit you with your knowledge.
The Shaykh : Yes. The institution. There is no zakat on it except for the money and what is prepared for sale. As for what is prepared to be kept, there is no zakat on it. For example, if a person has warehouses where he stores money but does not want to sell them, these warehouses, even if their value is high, have no zakat, because they are like a slave or a horse, on which there is no zakat by the explicit text of the hadith.
As for what is bought and sold, there is zakat on it because it is trade goods. Likewise, the containers of grocery stores, the cabinets, and the like have no zakat, except for what is sold, on which there is zakat.
As for the date palms in the orchard, zakat is obligatory on their fruit if it reaches the nisab. The nisab for fruits is three hundred sa' (a dry measure of about 3 kg) by the sa' of the Prophet (peace and blessings be upon him), which is two hundred and thirty sa' by the sa' of Najd, plus one sa' of the Prophet (peace and blessings be upon him). On his bed.
There is no zakat on real estate. There is no zakat on real estate except for a real estate dealer who buys and sells real estate, buying this for them and selling that, and the like. There is zakat on this because it is trade goods. As for real estate prepared for exploitation, there is no zakat on it even if it reaches millions of dirhams. Rather, the zakat is on its rent. When he receives the rent, he pays its zakat, even if a lunar year has not passed for it, as chosen by Shaykh al-Islam Ibn Taymiyyah (may Allah have mercy on him), or when the lunar year has passed, according to the second opinion.
The Shaykh : Yes. The institution. There is no zakat on it except for the money and what is prepared for sale. As for what is prepared to be kept, there is no zakat on it. For example, if a person has warehouses where he stores money but does not want to sell them, these warehouses, even if their value is high, have no zakat, because they are like a slave or a horse, on which there is no zakat by the explicit text of the hadith.
As for what is bought and sold, there is zakat on it because it is trade goods. Likewise, the containers of grocery stores, the cabinets, and the like have no zakat, except for what is sold, on which there is zakat.
As for the date palms in the orchard, zakat is obligatory on their fruit if it reaches the nisab. The nisab for fruits is three hundred sa' (a dry measure of about 3 kg) by the sa' of the Prophet (peace and blessings be upon him), which is two hundred and thirty sa' by the sa' of Najd, plus one sa' of the Prophet (peace and blessings be upon him). On his bed.
There is no zakat on real estate. There is no zakat on real estate except for a real estate dealer who buys and sells real estate, buying this for them and selling that, and the like. There is zakat on this because it is trade goods. As for real estate prepared for exploitation, there is no zakat on it even if it reaches millions of dirhams. Rather, the zakat is on its rent. When he receives the rent, he pays its zakat, even if a lunar year has not passed for it, as chosen by Shaykh al-Islam Ibn Taymiyyah (may Allah have mercy on him), or when the lunar year has passed, according to the second opinion.
Source
اللقاءات الرمضانية لعام 1415هـ - 3 — binothaimeen.net (45:36)
The Arabic text is a machine transcription of the audio recording.