How to pay zakah on shares owned by an individual in companies
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Q: His Eminence the Shaykh / Abdul Aziz ibn Abdullah ibn Baz (may Allah preserve him). Peace be upon you, and Allah's mercy and blessings. After that:
I ask your Eminence to kindly inform me about the following question, which is:
If I own shares in one of the joint-stock companies outside the Kingdom, for example in America. Is it obligatory for me to pay zakah on the profits, or on the profits and the capital? May you have abundant thanks and appreciation.
A: And upon you be peace, and Allah's mercy and blessings. After that:
The answer in detail is: If you intend to sell the shares, then there is zakah on them. If you do not intend to sell them, then the zakah is on their profits if a lunar year has passed, provided the shares are land or other goods. However, if they are currency, then there is zakah on them and on their profits, and the profit follows the capital in its lunar year. Peace be upon you, and Allah's mercy and blessings.
Grand Mufti of the Kingdom of Saudi Arabia
Abdul Aziz ibn Abdullah ibn Baz
I ask your Eminence to kindly inform me about the following question, which is:
If I own shares in one of the joint-stock companies outside the Kingdom, for example in America. Is it obligatory for me to pay zakah on the profits, or on the profits and the capital? May you have abundant thanks and appreciation.
A: And upon you be peace, and Allah's mercy and blessings. After that:
The answer in detail is: If you intend to sell the shares, then there is zakah on them. If you do not intend to sell them, then the zakah is on their profits if a lunar year has passed, provided the shares are land or other goods. However, if they are currency, then there is zakah on them and on their profits, and the profit follows the capital in its lunar year. Peace be upon you, and Allah's mercy and blessings.
Grand Mufti of the Kingdom of Saudi Arabia
Abdul Aziz ibn Abdullah ibn Baz
Source
binbaz.org.sa
The Arabic text is copied verbatim from the original source, without any edits.