Is Zakat obligatory on shares a girl has owned for seven years, and what is its amount if it is obligatory?
is obligatory on shares based on the shareholder's intention:
- If the shares are intended for benefiting from their annual dividends (not for trade), then there is no Zakat on the principal of the share. Rather, Zakat is obligatory on the dividends if they reach the (minimum threshold) and a hawl (full lunar year) has passed on them, at a rate of one-quarter of one-tenth (2.5%).
- If the shares are intended for trade (selling them when their price increases), then they are subject to Zakat as trade goods. All shares must be evaluated at the end of each Hijri year, and Zakat at the rate of one-quarter of one-tenth (2.5%) is due for all past years for which Zakat was not paid.
- Zakat is obligatory on the owner of the shares.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
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- 123369
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- Text
- Summary from Ftawy's records, reviewed by El Fatwa's sharia committee.
- Read the full ruling
- Read the full answer on Ftawy