Is zakat obligatory on a bank certificate with quarterly profits, and on money given to someone to invest in trade in exchange for a variable monthly sum, and how is zakat calculated in both cases?
Bonds are usurious loans, which are forbidden. is obligatory on them because they are a debt owed to their owner. Zakat is calculated annually and paid upon receipt. As for the interest accrued on them, it is ill-gotten wealth that must be disposed of in charitable causes. As for permissible investment, three conditions must be met: the money must be invested in permissible activities, the capital must not be guaranteed, and the profit must be specified as a common percentage of the profit, not of the capital. Zakat is obligatory on the principal amount and its profit. Giving money to someone to trade with it in exchange for a percentage of the profit is called (profit-sharing partnership), and for its validity, the three aforementioned conditions must be met. If a year passes on the money, Zakat becomes obligatory on it and its profits. The Zakat on trade goods is a quarter of a tenth (2.5%), and Zakat is due on each person's wealth.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
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- Summary from Ftawy's records, reviewed by El Fatwa's sharia committee.
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