I am in debt to the Real Estate Development Bank and I pay the zakah of my wealth. Should I set aside from my wealth the amount owed to the bank without paying zakah on it, or not?
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The questioner : He says: I am in debt to the Real Estate Development Bank and I pay the zakah of my wealth. Should I set aside from my wealth the amount owed to the bank without paying zakah on it, or not?
The Shaykh : Scholars have differed on this issue. Some hold that a debt prevents the obligation of zakah on the money you possess. According to this view, if you have a debt to the Real Estate Bank or any other entity, you are not required to pay zakah on the amount corresponding to that debt.
The questioner : Yes.
The Shaykh : For example, if you have one hundred thousand and you owe fifty thousand, you only pay zakah on the fifty thousand. The other fifty thousand, which corresponds to the debt, is not subject to zakah.
The questioner : Yes.
The Shaykh : Some scholars held that a debt does not exempt one from zakah, and that a person must pay zakah on what is in his possession, even if he has a debt equal to or greater than it. Others held that if the wealth is apparent, such as fruits, grains, or livestock, zakah is obligatory on it even if the person has a debt equal to or greater than it.
The questioner : Yes.
The Shaykh : If the wealth is not apparent, such as the two currencies (coins and cash) and trade goods, then he is not required to pay zakah on the amount corresponding to the debt. Each side has an argument to rely on. Those who say that a debt prevents zakah on both apparent and hidden wealth argue that zakah was made obligatory as a form of support, and a debtor is not in a position to offer support, because he himself is entitled to be given. How can he give?
The questioner : Yes.
The Shaykh : Also, in this state, he is not considered wealthy as long as he has a debt. The Prophet (peace and blessings be upon him) said to Mu'adh when he sent him to Yemen:Riyad as-Salihin 1077 As for those who say that zakah is obligatory on him in all cases, they said that the texts are general regarding every five awqiyah Sahih Ibn Khuzaymah 6:54 and regarding silver, in the hadith of Abu Bakr which he wrote, he said: "In silver, for every two hundred dirhams, a quarter of a tenth".
The questioner : Yes.
The Shaykh : They said that these general statements indicate the obligation of zakah whether the person has a debt or not. Also, zakah is only obligatory on wealth, not on the person's liability, as evidenced by the saying of Allah the Exalted:[At-Tawbah 9:103] and the saying of the Prophet (peace and blessings be upon him) in the hadith of Mu'adh: Sahih al-Bukhari 1395 A person is one who possesses wealth, even if he has a debt.
The questioner : Yes.
The Shaykh : According to this, zakah is obligatory on him even if he has a debt. He pays the zakah on what is in his hand. If he needs to pay off the debt, he takes it from the zakah of others. As for those who distinguished between apparent wealth and other wealth, they said that the Prophet (peace and blessings be upon him) used to send collectors to collect zakah from apparent wealth, and these collectors did not ask those who owed zakah if they had any debts.
The questioner : Yes.
The Shaykh : This indicates that zakah is obligatory on it absolutely. Also, apparent wealth is the object of people's desires due to its visibility and clarity, while debts are a hidden matter unknown to people. Therefore, it is not possible to exempt the apparent zakah based on a hidden, internal matter. What we see after all this is that zakah is obligatory on the debtor and is not exempted from him, because the evidence is general, and zakah is on the wealth, not on the liability. So we do not say that the liability is occupied by the previous debt and therefore not occupied by zakah. Rather, we say that zakah is on the wealth, so as long as this wealth is with him, zakah is obligatory on him.
The questioner : Yes.
The Shaykh : Especially in the case of a debt to the Real Estate Development Bank.
The questioner : Yes.
The Shaykh : Because the debt to the Real Estate Development Bank is deferred, and the amount that becomes due each year is small. It is not possible to say to this man who owes three hundred thousand to the Real Estate Development Bank: "Do not pay zakah on three hundred thousand of your wealth on the grounds that you have a debt you will pay off after twelve years or more." Rather, you must pay the zakah on your wealth. If the amount you owe to the bank becomes due and you do not have wealth to pay it with, you may take from the zakah, because you are among those in debt.
The questioner : Yes.
The Shaykh : Yes.
Except in one issue: if the debt is due at the same time as the zakah becomes due.
The questioner : Yes.
The Shaykh : And you are now going to hand it over to its owner. In that case, we say that you do not have to pay zakah on this wealth because you have offered it for payment. Also, 'Umar (may Allah be pleased with him) used to give sermons and say: "O people, this is the month of the zakah of your wealth. So whoever has a debt, let him pay it" or he said, "let him defer it." This indicates that a due debt takes precedence over zakah if the person intends to pay it.
The questioner : Yes.
The Shaykh : Yes.
The questioner : Or it can be said to the person whose money is being requested for the Development Fund, and who fears paying the zakah, that he should give it to the Development Fund so that the Fund pays the zakah on it.
The Shaykh : How?
The questioner : For example, if three hundred thousand is being requested for a specific number of years, and he fears paying this zakah, he gives this money if it remains with him, and ...
The Shaykh : Okay, if he wants to expedite the debt?
The questioner : Yes.
The Shaykh : So that he does not pay zakah?
The questioner : Yes.
The Shaykh : This is good.
The questioner : This message came from Ahmad ...
The Shaykh : But on the condition that he pays it before his zakah becomes due. For example, if the zakah becomes due in Ramadan, he pays it in Rajab or Sha'ban.
The questioner : Yes.
The Shaykh : Yes.
The questioner : This message came from Ahmad Muhammad Ibrahim Abu Hudrah al-'Ariyani from Jeddah, King Abdulaziz University.
The Shaykh : Scholars have differed on this issue. Some hold that a debt prevents the obligation of zakah on the money you possess. According to this view, if you have a debt to the Real Estate Bank or any other entity, you are not required to pay zakah on the amount corresponding to that debt.
The questioner : Yes.
The Shaykh : For example, if you have one hundred thousand and you owe fifty thousand, you only pay zakah on the fifty thousand. The other fifty thousand, which corresponds to the debt, is not subject to zakah.
The questioner : Yes.
The Shaykh : Some scholars held that a debt does not exempt one from zakah, and that a person must pay zakah on what is in his possession, even if he has a debt equal to or greater than it. Others held that if the wealth is apparent, such as fruits, grains, or livestock, zakah is obligatory on it even if the person has a debt equal to or greater than it.
The questioner : Yes.
The Shaykh : If the wealth is not apparent, such as the two currencies (coins and cash) and trade goods, then he is not required to pay zakah on the amount corresponding to the debt. Each side has an argument to rely on. Those who say that a debt prevents zakah on both apparent and hidden wealth argue that zakah was made obligatory as a form of support, and a debtor is not in a position to offer support, because he himself is entitled to be given. How can he give?
The questioner : Yes.
The Shaykh : Also, in this state, he is not considered wealthy as long as he has a debt. The Prophet (peace and blessings be upon him) said to Mu'adh when he sent him to Yemen:
then tell them that Allah has made the payment of Zakat obligatory upon them. It should be collected from their rich and distributed among their poor
أعلمهم أن عليهم افترض عليهم صدقة تؤخذ من أغنيائهم فترد على فقرائهمThere is no charity in less than five camels, nor in less than five wasqs, nor in less than five awqiyah.
ليس فيما دون خمس ذود صدقة ولا فيما دون خمسة أوسق صدقة ولا فيما دون خمسة أواق صدقةThe questioner : Yes.
The Shaykh : They said that these general statements indicate the obligation of zakah whether the person has a debt or not. Also, zakah is only obligatory on wealth, not on the person's liability, as evidenced by the saying of Allah the Exalted:
Take, [O, Muhammad], from their wealth a charity by which you purify them
خذ من أموالهم صدقة تطهرهمthen teach them that Allah has made it obligatory for them to pay the Zakat from their property
أعلمهم أن الله افترض عليهم صدقة في أموالهمThe questioner : Yes.
The Shaykh : According to this, zakah is obligatory on him even if he has a debt. He pays the zakah on what is in his hand. If he needs to pay off the debt, he takes it from the zakah of others. As for those who distinguished between apparent wealth and other wealth, they said that the Prophet (peace and blessings be upon him) used to send collectors to collect zakah from apparent wealth, and these collectors did not ask those who owed zakah if they had any debts.
The questioner : Yes.
The Shaykh : This indicates that zakah is obligatory on it absolutely. Also, apparent wealth is the object of people's desires due to its visibility and clarity, while debts are a hidden matter unknown to people. Therefore, it is not possible to exempt the apparent zakah based on a hidden, internal matter. What we see after all this is that zakah is obligatory on the debtor and is not exempted from him, because the evidence is general, and zakah is on the wealth, not on the liability. So we do not say that the liability is occupied by the previous debt and therefore not occupied by zakah. Rather, we say that zakah is on the wealth, so as long as this wealth is with him, zakah is obligatory on him.
The questioner : Yes.
The Shaykh : Especially in the case of a debt to the Real Estate Development Bank.
The questioner : Yes.
The Shaykh : Because the debt to the Real Estate Development Bank is deferred, and the amount that becomes due each year is small. It is not possible to say to this man who owes three hundred thousand to the Real Estate Development Bank: "Do not pay zakah on three hundred thousand of your wealth on the grounds that you have a debt you will pay off after twelve years or more." Rather, you must pay the zakah on your wealth. If the amount you owe to the bank becomes due and you do not have wealth to pay it with, you may take from the zakah, because you are among those in debt.
The questioner : Yes.
The Shaykh : Yes.
Except in one issue: if the debt is due at the same time as the zakah becomes due.
The questioner : Yes.
The Shaykh : And you are now going to hand it over to its owner. In that case, we say that you do not have to pay zakah on this wealth because you have offered it for payment. Also, 'Umar (may Allah be pleased with him) used to give sermons and say: "O people, this is the month of the zakah of your wealth. So whoever has a debt, let him pay it" or he said, "let him defer it." This indicates that a due debt takes precedence over zakah if the person intends to pay it.
The questioner : Yes.
The Shaykh : Yes.
The questioner : Or it can be said to the person whose money is being requested for the Development Fund, and who fears paying the zakah, that he should give it to the Development Fund so that the Fund pays the zakah on it.
The Shaykh : How?
The questioner : For example, if three hundred thousand is being requested for a specific number of years, and he fears paying this zakah, he gives this money if it remains with him, and ...
The Shaykh : Okay, if he wants to expedite the debt?
The questioner : Yes.
The Shaykh : So that he does not pay zakah?
The questioner : Yes.
The Shaykh : This is good.
The questioner : This message came from Ahmad ...
The Shaykh : But on the condition that he pays it before his zakah becomes due. For example, if the zakah becomes due in Ramadan, he pays it in Rajab or Sha'ban.
The questioner : Yes.
The Shaykh : Yes.
The questioner : This message came from Ahmad Muhammad Ibrahim Abu Hudrah al-'Ariyani from Jeddah, King Abdulaziz University.