How is Zakat due on money paid to a relative for the purpose of trade, with a percentage of the profits being received?
The capital owner is obligated to pay zakat on his capital. However, scholars differ regarding who is obligated to pay zakat on profits in mudarabah (profit-sharing partnership): 1. Some say: The capital owner pays zakat on both the capital and the profit. The zakat is disbursed from the qirad (profit-sharing) funds and calculated from the profit. 2. The Hanbalis: The capital owner is responsible for the zakat on the entire capital, excluding the worker's share. The worker is not obligated to pay zakat on his share until they divide the profits. 3. The Hanafis: The worker is responsible for the zakat on his share of the profit if it reaches the nisab (minimum threshold). 4. The Malikis: The capital owner is responsible for the zakat on his capital and his share of the profit every year. The worker is responsible for the zakat on his share once he receives it after the final settlement, for one year.
The preponderant view is that of the Hanbalis.
Summarized from the full answer at Ftawy · reviewed Sep 2, 2026
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