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The question

Is zakat obligatory on money invested in livestock in partnership with farmers, and if so, how is it calculated?

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Source: FtawySummarized from the full answer at Ftawy · imported Sep 2, 20261 min readAlso available in العربية
The answer

This issue is called "mixing of assets" (khaltat al-a'yan), which occurs when two or more individuals share ownership of a number of livestock that reaches a nisab (taxable threshold) or more. In such a case, it is zakat-eligible as the property of a single person if a hawl (full lunar year) has passed. It is not a condition, according to the Shafi'i and Hanbali schools, for each partner's share to reach a nisab; rather, zakat becomes obligatory if the total number of livestock reaches a nisab. Others hold that each partner must possess a nisab for the mixing to be effective.

However, if these livestock are for trade, there are two opinions regarding their zakat: 1. They are subject to trade zakat if a hawl passes and their value reaches the nisab of livestock. 2. They are subject to zakat on pastured animals (zakat al-sawm), which is the new opinion of Malik and Al-Shafi'i. If the livestock do not reach the nisab for livestock but their value reaches the nisab for trade goods, then they are subject to zakat on trade goods.

Summarized from the full answer at Ftawy · imported

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Ftawy
Original fatwa ID
83532
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