Is zakat obligatory on the amount recovered from a company after its liquidation, given that it is less than the original capital?
Source: FtawySummarized from the full answer at Ftawy · imported Sep 2, 2026
If the company does not pay on its wealth, then the shareholders must pay zakat on their shares. If a shareholder can determine the zakat due on their shares, they should pay it accordingly.
If they cannot:
1. If the shares are not for trading, zakat is due on the dividends after the passing of a full year (hawl).
2. If the shares are for trading, they are subject to zakat as trade goods, at a rate of a quarter of one-tenth (2.5%) of their market value or an valuation by experts, upon the passing of a full year (hawl).
If the shares become stalled (illiquid), zakat is paid once upon their sale or the recovery of their value, for one year only.
Summarized from the full answer at Ftawy · imported
Read the full answer on Ftawyhttps://ftawy.com/en/questions/13624
Where this answer came from
- Source platform
- Ftawy
- Original fatwa ID
- 13624
- Imported
- Translation status
- Source text, unreviewed
- Read the full ruling
- Read the full answer on Ftawy