I have one hundred shares in a company; is zakah due on them? And what is the amount of zakah on shares?
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The questioner : He says:The questioner : Your Eminence, I have one hundred shares in a company. Is zakah due on them? And what is the amount of zakah on shares?
The Shaykh : If the state, may Allah guide it, collects zakah from these companies accurately, then you are not required to pay zakah, because the one in authority has the right to collect zakah and distribute it in its prescribed channels, just as the Prophet (peace and blessings be upon him) used to send his agents to collect zakah, and it would come to him in the city and he would distribute it. But if the state does not collect it, then you must count the shares that you own. If you have held them for trade, then estimate their value when zakah becomes due and pay one quarter of a tenth of the value, because this is the zakah of goods. If you have not held them for trade but rather to keep them and let them grow, then there is no zakah on you for the physical items that are not among the zakatable assets. Just as if a person is a shareholder in equipment and machines not for trade but for use, there is no zakah on him for these machines; rather, the zakah is on the money that is obtained from them. Yes.
The Shaykh : If the state, may Allah guide it, collects zakah from these companies accurately, then you are not required to pay zakah, because the one in authority has the right to collect zakah and distribute it in its prescribed channels, just as the Prophet (peace and blessings be upon him) used to send his agents to collect zakah, and it would come to him in the city and he would distribute it. But if the state does not collect it, then you must count the shares that you own. If you have held them for trade, then estimate their value when zakah becomes due and pay one quarter of a tenth of the value, because this is the zakah of goods. If you have not held them for trade but rather to keep them and let them grow, then there is no zakah on you for the physical items that are not among the zakatable assets. Just as if a person is a shareholder in equipment and machines not for trade but for use, there is no zakah on him for these machines; rather, the zakah is on the money that is obtained from them. Yes.