How is Zakat on money paid for a company whose capital is constantly in flux in the market, and the owner has no liquidity, and the company is in complete and continuous debt (both profits and capital)?
You must assess the trade goods and the current debts owed to you, and subtract the debts you owe. If the remainder reaches the nisab (the threshold), which is equivalent to 85 grams of gold or 595 grams of silver, then zakat is obligatory on both the principal and the profit. The profit does not require a separate year to pass. If liquidity is not available to pay the zakat, then a portion of the trade goods must be sold to distribute it to its rightful recipients, because it is their right. As for debts owed by procrastinators and those in financial hardship, there is no zakat on them unless you receive them, in which case they are zakatable for one year.
Summarized from the full answer at Ftawy · reviewed Sep 2, 2026
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