Is zakat obligatory on a stock portfolio after one Hawl has passed, even though the employee's balance is only 600 Riyals after paying bank installments, and he has debts totaling 360,000 Riyals?
Scholars have differed regarding the of someone who owns a (minimum taxable amount) but has a debt that consumes it or reduces it, into two opinions: The first is the obligation of zakat, which is the view of the Shafi'is. The second is the non-obligation, which is the view of the Hanafis, Malikis, and Hanbalis.
Sheikh Ibn Uthaymeen preferred that zakat is obligatory absolutely, unless the debt is due before the zakat becomes due; in that case, the debt must be paid first, and then whatever remains is subject to zakat.
As for zakat on shares: if they are for trading, they are valued every year, and 2.5% of their value is paid as zakat. If they are for benefiting from their profits, then zakat is due on the profits if they reach the nisab and a year has passed on them, and there is no zakat on the principal shares except with a detailed explanation related to the type of companies.
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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