Is Zakat obligatory on profits distributed by a company and placed in a closed account that cannot be accessed for five years?
Zakat becomes obligatory on withheld money upon its retrieval. Zakat must be paid for all past years if the money reached theable nisab, and this is the view of the majority of scholars. There is another opinion stating that zakat is due for one year only (the view of Malik), and another opinion stating that a new hawl (zakat year) begins (the view of Abu Hanifa). The first opinion is more cautious and absolves one's responsibility more fully. Zakat is calculated by giving one-quarter of one-tenth (2.5%) for each Hijri year that has passed.
Summarized from the full answer at Ftawy · reviewed Sep 2, 2026
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