Is zakah obligatory on shares? Or on their profits?
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Question:
He says: Is zakah obligatory on the capital invested in a company in the form of shares, or is zakah only on the profit if it reaches the nisab? And what is the amount of the nisab?
Answer:
This requires detail: If the shares are for sale, then zakah is obligatory on both the shares and the profits.
The nisab in gold is twenty mithqals, and in silver it is one hundred and forty mithqals. The amount of gold in Saudi pounds is eleven pounds and three-sevenths of a pound, and the equivalent in silver is fifty-six Saudi silver riyals.
So, zakah is obligatory on the shares and the profits if they are for sale, such as investing in land for sale, or investing in cars for sale, or the like for sale; in that case, one pays zakah on the whole. However, if the investment is in something for utilization rather than sale, such as land invested in for agriculture or the like, or for rental, then the zakah is on its produce. If the crops reach the nisab, one pays zakah on them. If they are dates, one pays zakah on them if they reach the nisab, and so on.
The point is: If the investment is in land that is not for sale, for example, but for utilization through agriculture or the like, or through rental, then there is no zakah on the land itself. Rather, the zakah is on its produce. The rent collected from it is subject to zakah if it reaches the nisab and a lunar year has passed over it. The crops and fruits in it are subject to zakah if they reach the nisab, and so on. Yes.
The presenter: May Allah reward you with good.
He says: Is zakah obligatory on the capital invested in a company in the form of shares, or is zakah only on the profit if it reaches the nisab? And what is the amount of the nisab?
Answer:
This requires detail: If the shares are for sale, then zakah is obligatory on both the shares and the profits.
The nisab in gold is twenty mithqals, and in silver it is one hundred and forty mithqals. The amount of gold in Saudi pounds is eleven pounds and three-sevenths of a pound, and the equivalent in silver is fifty-six Saudi silver riyals.
So, zakah is obligatory on the shares and the profits if they are for sale, such as investing in land for sale, or investing in cars for sale, or the like for sale; in that case, one pays zakah on the whole. However, if the investment is in something for utilization rather than sale, such as land invested in for agriculture or the like, or for rental, then the zakah is on its produce. If the crops reach the nisab, one pays zakah on them. If they are dates, one pays zakah on them if they reach the nisab, and so on.
The point is: If the investment is in land that is not for sale, for example, but for utilization through agriculture or the like, or through rental, then there is no zakah on the land itself. Rather, the zakah is on its produce. The rent collected from it is subject to zakah if it reaches the nisab and a lunar year has passed over it. The crops and fruits in it are subject to zakah if they reach the nisab, and so on. Yes.
The presenter: May Allah reward you with good.
Source
binbaz.org.sa
The Arabic text is copied verbatim from the original source, without any edits.