How do we calculate the Zakat for commercial companies?
How to Calculate for Commercial Companies:
1. For Companies Dealing in Commercial Goods: Goods prepared for sale are appraised at their current value at the end of the hawl (one lunar year). Cash, bank balances, and collectible debts are added to this value. Zakat is then paid at a rate of one-quarter of one-tenth (2.5%) of the total sum.
2. For Companies Undertaking Income-Generating Projects (Not Commercial Goods): The existing funds and expected collectible debts are considered at the end of the hawl. Zakat is then paid at a rate of one-quarter of one-tenth (2.5%) of that amount.
Note: Zakat is not obligatory on buildings, offices, vehicles, furniture, and machinery used by the company that are not intended for sale.
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.
- Read the full ruling
- Read the full answer on Ftawy