Is zakat obligatory on the item "prepaid expenses" appearing under company assets in the financial statements, knowing that it represents expenses actually paid for future years and is not expected to be recovered?
If the expenses were actually paid to the mentioned parties or others, then there is no zakat due on them, whether paid in advance or in arrears, unless the intention was to evade zakat. If the intention was to evade, then zakat is obligatory.
Summarized from the full answer at Ftawy · reviewed Sep 2, 2026
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