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The question

How is zakat paid on shares purchased in an Islamic bank with the intention of benefiting from their annual profits and the possibility of selling part of them later?

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Source: FtawySummary from Ftawy's records · added here Sep 2, 20261 min readAlso available in العربية
The answer

is obligatory on shares if they are trade goods. They are to be valued, and one-quarter of one-tenth (2.5%) of their value, along with the profit, is due as Zakat upon the completion of the hawl (one lunar year), regardless of whether they were intended for trade or not. However, if the shares are fixed assets, there is no Zakat on them. Instead, Zakat is due on the profits generated from them if these profits reach the (minimum threshold) and a hawl passes over them. Zakat is not obligatory on shares unless there is a firm intention of trading with them.

Summary from Ftawy's records · added here

Reviewed by El Fatwa's sharia committee.

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Ftawy
Original fatwa ID
119383
Added here
. This is when the answer was added to El Fatwa, not the fatwa's date.
Text
Summary from Ftawy's records, reviewed by El Fatwa's sharia committee.
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Read the full answer on Ftawy