How do we pay the zakah on company shares?
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The questioner : Shaykh, how do we pay the zakah on shares?
The Shaykh : Which shares?
The questioner : Shares of the...
The Shaykh : Company shares? May Allah reward you. As for the one who trades in them, meaning he buys and sells, his ruling is that they are merchandise for trade. When the lunar year of possession has passed, he asks what the current value of the share is and calculates the zakah.
The questioner : ... .
The Shaykh : As for the person who invests in this for development and does not intend to trade in the shares, he owes zakah on the money, the cash. As for the equipment and what is related to it, there is no zakah on it. It appears to me that the registration with the government, the government takes its zakah, yes?
The Shaykh : Which shares?
The questioner : Shares of the...
The Shaykh : Company shares? May Allah reward you. As for the one who trades in them, meaning he buys and sells, his ruling is that they are merchandise for trade. When the lunar year of possession has passed, he asks what the current value of the share is and calculates the zakah.
The questioner : ... .
The Shaykh : As for the person who invests in this for development and does not intend to trade in the shares, he owes zakah on the money, the cash. As for the equipment and what is related to it, there is no zakah on it. It appears to me that the registration with the government, the government takes its zakah, yes?