What is the ruling on a partnership for fruit farming if one partner provides the capital and the other manages, with the profit divided equally or the latter receiving one-third, without bearing any loss? Is zakat due on the fruits or on the capital?
It is not permissible for a worker to guarantee capital and bear losses unless it is due to his transgression or negligence. Stipulating such a condition invalidates the partnership contract. However, if the agreement is for a share of the profit in exchange for management and investment without a guarantee, there is no harm in that.
As for the on fruits, the majority of scholars hold that zakat is not obligatory on them. However, if they are trade goods, they are subject to zakat on trade goods. The Seventh Symposium of the Zakat House issued a stating: "If trade goods are combined with another reason for zakat, such as livestock or crops, they are subject to zakat on trade goods."
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