1. Is the aforementioned investment method, which relies on paying a fixed monthly percentage of the capital with profits settled later, religiously questionable or impermissible? 2. Is it permissible in Islamic law to pay Zakat on the monthly profits in advance installments throughout the year? 3. Is it correct to calculate Zakat only on the principal capital, without including the profits that are spent as soon as they are received? 4. In light of deteriorating conditions and the inability to recover the principal capital, is Zakat still obligatory on this money?
Giving money to be used in business in exchange for a share of the profit is a permissible mudarabah. If the contract includes a guarantee of the capital, it is invalid, and the profit belongs to the owner of the capital, with the worker receiving a fair wage (ujrat al-mithl). However, if it does not include a guarantee, it is a valid mudarabah, and the owner has the right to terminate it. Zakat is obligatory on the capital and its profit if it reaches the nisab and a year has passed over it. What was spent before the year's end is not subject to zakat, and if zakat is not paid after it becomes due, the right to zakat is not forfeited.
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