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﴿ فَاسْأَلُوا أَهْلَ الذِّكْرِ إِن كُنتُمْ لَا تَعْلَمُونَ ﴾

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The Ruling on Zakah for Funds Placed in Commercial and Investment Shares

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Question:
It was not previously known to me that financial shares in land and real estate are subject to zakah. The problem is that I have shares held in trust for some of my brothers and relatives, as well as some personal shares of my own, the value of which ranges from five thousand to six thousand riyals. The questions are: What is obligatory for me to do regarding my other personal shares, given that their period has exceeded approximately five years, or less? Please advise us, may Allah reward you with good.

Answer:
If the shares are commercial, in land for trade or in other items for trade, then they are subject to zakah. The owners of the shares are the ones who pay the zakah. They are the ones who pay it, unless they appoint you as their agent. If they say, "We have appointed you to pay the zakah," then you pay the zakah. Otherwise, they are the ones who pay it, and you have no blame on you. You only pay zakah on your own wealth. As for the wealth of people, they pay zakah on it every year, unless the owners of the wealth are minors and you are their guardian, in which case you pay zakah on their behalf. ... You pay zakah on their behalf.
As for if the funds are not commercial, but are investment funds in land that is being invested in, not for sale, such as land for farming, the zakah is on the produce from the farming. Or if it is in a company that invests in items like iron, for example, or other items that are not intended for sale, but rather for selling the produce, not selling the assets. Then what is sold is what is subject to zakah, and what is not sold—machines that are not sold, land that is not sold, cars that are not sold—these are not subject to zakah. Rather, the zakah is on the items sold by this company, and the produce sold by this company. Whenever the lunar year completes for them, it is paid, either through the company or through the owners of the wealth. They inform the company, and it pays, or the owners of the wealth appoint ... the company to pay zakah on these funds intended for sale whenever the year turns.

Question: ...

Answer: If they are idle until they become active, and the idle ones have no sale and nothing else, then when they become active for sale and purchase, they are subject to zakah. But if they are idle, with no sale and no purchase, they are idle funds, and their owners do not intend to sell or purchase them.
If they are idle, with no sale and no purchase, and they have been suspended from sale and purchase for other reasons, otherwise, if they are prepared for sale, they are subject to zakah, even if they are stagnant and not worth much. But if they are in a state where he is no longer selling anything or valuing anything, and he has given up on them, no longer intending to sell or purchase; they look into another matter, what to do with them?
So these are not subject to zakah. But if their idleness means that they have no customers, meaning there is no activity, then these are subject to zakah according to their value. If a piece was worth one hundred from the start, then it became stagnant until it was worth only fifty, then everything is subject to zakah according to its value.

Question: If the owner of the real estate is delaying, and did not hand over my share to me until after six years, promising me every year, do I pay zakah on it for the six years?

Answer: The one who is delaying is not subject to zakah. If your right is with a person who is insolvent or delaying, there is no zakah until you receive it. And if you paid it ... it is good, if Allah wills.
Source binbaz.org.sa

The Arabic text is copied verbatim from the original source, without any edits.

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