How is Zakat calculated on shares and their annual returns in American companies?

A Muslim must ensure that their dealings are in accordance with Islamic law. It is not permissible for them to contribute to a company whose transactions are forbidden by Islamic law.

Regarding the zakat on shares in companies:

1. If the intention is to benefit from the annual income (not for trade): There is no zakat on the principal of the share itself. Rather, zakat is due on the income (2.5%) after a full year has passed from the day it was received, provided the conditions for zakat are met. This applies if the company's shares represent fixed assets. However, if they are trade goods, then zakat is on both the capital and the profit. 2. If the intention is for trade: They are subject to zakat as trade goods. When the zakat year is due and they are still in his possession, he pays zakat on their market value (2.5%) of that value and any profit, if present. 3. When shares are sold during the year: Their price is added to his wealth and zakat is paid on it along with his wealth when his zakat year becomes due. As for the buyer, he pays zakat on the purchased shares as described above.

If the joint-stock company undertakes to disburse the zakat, it acts on behalf of the share owners.