Zakah on Shares in the Electricity Company
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Q: From 'Abd al-'Aziz ibn 'Abd Allah ibn Baz, to the honorable brother / S. A. H. - may Allah guide him - Peace be upon you, and Allah's mercy and blessings. After that:
O Beloved: Your noble letter, dated 12/5/1395 AH, has arrived - may Allah guide you - and I have understood the questions it contains. Here are the questions and their answers:
Q: I deposited a sum of money in an electricity company as a shareholding. Is there zakah on the money? Does the zakah start from the date of deposit, or from the receipt of the profits? And what is the fixed amount of zakah on every 100 Saudi Riyals?
A: There is no zakah whatsoever on what is placed in a company like the one mentioned, because the intention is investment, not sale. Rather, zakah is due on the profits that reach the shareholder, once a lunar year has passed after they are delivered to him, and they reach the nisab (minimum threshold) for zakah.
The obligatory amount is two and a half riyals from every hundred, which is one-quarter of a tenth, by explicit text and scholarly consensus.
President of the Islamic University.
O Beloved: Your noble letter, dated 12/5/1395 AH, has arrived - may Allah guide you - and I have understood the questions it contains. Here are the questions and their answers:
Q: I deposited a sum of money in an electricity company as a shareholding. Is there zakah on the money? Does the zakah start from the date of deposit, or from the receipt of the profits? And what is the fixed amount of zakah on every 100 Saudi Riyals?
A: There is no zakah whatsoever on what is placed in a company like the one mentioned, because the intention is investment, not sale. Rather, zakah is due on the profits that reach the shareholder, once a lunar year has passed after they are delivered to him, and they reach the nisab (minimum threshold) for zakah.
The obligatory amount is two and a half riyals from every hundred, which is one-quarter of a tenth, by explicit text and scholarly consensus.
President of the Islamic University.
Source
binbaz.org.sa
The Arabic text is copied verbatim from the original source, without any edits.