How is zakat paid on shares, 40% of whose value has been paid and a year has passed over them, and on a bank deposit that distributes its profits after a year has passed over it, and on a sum of money in foreign currency in the questioner's home country?
A Muslim must adhere to Islamic law in his dealings. Therefore, it is impermissible to contribute to companies that deal in what is forbidden by . Shares are subject to according to their purpose: if they are for benefiting from their returns, then Zakat is on the returns (a quarter of a tenth) after a year has passed, not on the original share itself if it represents fixed assets. However, if they are for trading, they are subject to Zakat as trade goods, based on their market value (a quarter of a tenth) when a year has passed. If the shares are sold during the year, their price is added to one's wealth and Zakat is paid on it along with the rest of the wealth. As for the Zakat on foreign currency deposits, the Zakat is to be paid in the same currency.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
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- Summary from Ftawy's records, reviewed by El Fatwa's sharia committee.
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- Read the full answer on Ftawy