How to Calculate Zakah on Shares
Machine translationRead the Arabic original
Question:
What is the ruling on the zakah of shares?
Answer:
If they are for sale, they are subject to zakah, just like shares in land. The zakah on land is calculated based on its value—the value of the land intended for trade and sale.
As for shares held for investment, one pays zakah on the profits that come to him. If a lunar year has passed while he possesses them, he pays zakah on them. Alternatively, if the profit is realized by the company, he may keep it, and if a lunar year passes over it, he pays zakah on it. However, there is no zakah on the principal capital if it is for investment, such as capital in electricity or other things that are invested in and not intended for sale.
What is the ruling on the zakah of shares?
Answer:
If they are for sale, they are subject to zakah, just like shares in land. The zakah on land is calculated based on its value—the value of the land intended for trade and sale.
As for shares held for investment, one pays zakah on the profits that come to him. If a lunar year has passed while he possesses them, he pays zakah on them. Alternatively, if the profit is realized by the company, he may keep it, and if a lunar year passes over it, he pays zakah on it. However, there is no zakah on the principal capital if it is for investment, such as capital in electricity or other things that are invested in and not intended for sale.
Source
binbaz.org.sa
The Arabic text is copied verbatim from the original source, without any edits.