Who is obliged to pay Zakat on an amount of (200,0 Riyals) after one Hawl (lunar year) has passed on an amount of (100,0 Riyals), the profit of which has reached another (100,0 Riyals) equally?
If the profits have been distributed, the capital owner pays on the principal and his share of the profits, by consensus. The mudarib (managing partner) pays zakat only on his share of the profit after a hawl (one lunar year) has passed.
If the distribution has not yet occurred, the capital owner pays zakat on the principal and his share of the profit immediately. As for the mudarib's share of the profit, there is a difference of opinion regarding its zakat:
- The Hanafis and Shafi'is hold that it is obligatory for the mudarib to pay zakat on it. According to the Shafi'is, the hawl begins from the appearance of the profit. - The Malikis and Hanbalis hold that zakat is not obligatory on the mudarib before the distribution, and the hawl recommences from the time of distribution.
The preponderant opinion is that zakat is not obligatory on the mudarib's share until he becomes entitled to it through distribution and a hawl has passed on it. As a precautionary measure, the mudarib may pay zakat on his share from the time of profit distribution.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
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- Original fatwa ID
- 12802
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- Summary from Ftawy's records, reviewed by El Fatwa's sharia committee.
- Read the full ruling
- Read the full answer on Ftawy