How to Pay the Zakah on Shares
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Question:
How is the zakah on shares paid, and is the zakah paid from the capital only? Please note that the bank or financial institution pays the zakah from the capital only when the lunar year has passed. If there are profits, is the zakah paid from the capital?
Answer:
Answer: Shares fall into two categories: fixed shares, such as shares in manufacturing plants that produce goods, and shares in fixed real estate that is rented out. For these, the zakah is due on the income; if he receives any of the income or rent, he pays zakah on it. As for shares that are bought and sold with the aim of making a profit, these are trade goods. When the lunar year has passed, he pays zakah on them by appraising them at their current value and paying zakah on that value. If he has received profits from them, he pays zakah on those as well. He pays zakah on the capital and on the profit, because the profit is attached to the capital.
How is the zakah on shares paid, and is the zakah paid from the capital only? Please note that the bank or financial institution pays the zakah from the capital only when the lunar year has passed. If there are profits, is the zakah paid from the capital?
Answer:
Answer: Shares fall into two categories: fixed shares, such as shares in manufacturing plants that produce goods, and shares in fixed real estate that is rented out. For these, the zakah is due on the income; if he receives any of the income or rent, he pays zakah on it. As for shares that are bought and sold with the aim of making a profit, these are trade goods. When the lunar year has passed, he pays zakah on them by appraising them at their current value and paying zakah on that value. If he has received profits from them, he pays zakah on those as well. He pays zakah on the capital and on the profit, because the profit is attached to the capital.
Source
www.alfawzan.af.org.sa
The Arabic text is copied verbatim from the original source, without any edits.