What is the ruling on zakat for company shares, and what is its amount?

A share is a partner's portion in the capital of a joint-stock company, and it is the document proving this portion. It has multiple values (nominal, book, real, market).

The zakat on company shares is calculated as follows:

- Shares held for trading: These are treated as trade goods, and their market value is subject to zakat at a rate of 2.5% at the end of each hawl (lunar year).

- Shares held for acquisition and profit generation:

- Purely industrial companies: Zakat is not obligatory on their shares themselves, but rather on their profits if they reach the nisab (minimum threshold) and a hawl passes over them, and on the cash equivalent of the share in the company's treasury.

- Purely commercial companies and industrial-commercial companies: Zakat is obligatory on their shares after deducting the value of buildings, tools, and machinery owned by the company, in addition to the cash equivalent of the share in the company's treasury.

- Agricultural companies: Zakat on crops and fruits is obligatory if the harvest is among the items subject to zakat, provided that the shareholder's portion reaches the nisab (300 sa' - prophetic measure), and on the cash equivalent of the share in the company's treasury.

Zakat is obligatory on the shareholder. The company may pay zakat on his behalf under certain conditions. The calculation of the hawl for traded shares begins from the hawl of the original capital, for industrial profits from the time they are received, and for agricultural harvests on the day of their harvest. The value of the share for zakat is calculated based on its market value at the end of the hawl.