Zakah on investment or trading shares in companies
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Q: I own a number of shares in some Saudi joint-stock companies, and I ask about how to pay their zakah? Is it based on their current market value, or on the annual profits, since I did not intend to sell them? Please advise us, and may Allah reward you.
A: If the shares are for investment and not for sale, it is obligatory to pay zakah on their monetary profits if a lunar year has passed and they reach the minimum threshold (nisab). As for if the shares are for sale, they are zakat-able along with their profit whenever a lunar year passes over the principal, based on their value at the completion of the year, whether they are land, cars, or other goods. May Allah guide them all.
A: If the shares are for investment and not for sale, it is obligatory to pay zakah on their monetary profits if a lunar year has passed and they reach the minimum threshold (nisab). As for if the shares are for sale, they are zakat-able along with their profit whenever a lunar year passes over the principal, based on their value at the completion of the year, whether they are land, cars, or other goods. May Allah guide them all.
Source
binbaz.org.sa
The Arabic text is copied verbatim from the original source, without any edits.