Are taxes and pension fund contributions paid from the profits of both partners or only from the profit of the active partner?
It is permissible for two individuals to share capital, or capital and labor, and for the profit to be divided between them according to their agreement, after the capital is secure and any loss is offset from the profit. All expenses are to be deducted from the revenues, and the division should be of the net profit in its Shari'ah-compliant meaning, which is the surplus over the capital. As for what is paid into the pension fund, the basic principle is that it is borne by the employee, while anything the state imposes on the employer is to be borne by the company.
Summarized from the full answer at Ftawy · reviewed Sep 2, 2026
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