How is money that has been recovered after ten years of contributing to an unlicensed real estate company to be زكّى (purified by paying zakat), and is zakat obligatory for one year only?
The questioner did not clarify the nature of his contribution to the real estate company, whether it is buying and selling real estate or buying and leasing.
- If the contribution is buying and selling: is obligatory on the capital and the realized profits, if the conditions for Zakat are met. - If the contribution is buying and leasing: Zakat is not obligatory on the properties themselves, but rather on the rent if it reaches the and a year has passed over it.
If the company did not succeed in making profits but is still active and the shareholder is able to dispose of his shares, then Zakat is not waived from the capital.
However, if the company is not active and the shareholder cannot dispose of his shares, then Zakat becomes obligatory upon receipt for one year only.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
Read the full answer on Ftawyhttps://ftawy.com/en/questions/144142
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- Ftawy
- Original fatwa ID
- 144142
- Added here
- . This is when the answer was added to El Fatwa, not the fatwa's date.
- Text
- Summary from Ftawy's records, reviewed by El Fatwa's sharia committee.
- Read the full ruling
- Read the full answer on Ftawy