Is Zakah due on the cows owned by this business, or on the net profits that result from it?
Q: I ask Your Eminence to be kind enough to answer the following two questions:First:
I am investing in a dairy business. Do I have to pay Zakah (obligatory charity) on the cows owned by this business, or on the net profits that result from it,
as is the case with investments in real estates and cars?Second: How can we calculate the Zakah due on the agricultural corporations that produce agricultural and dairy products, knowing that their shares are traded on the market?May Allah guide and reward you!
A:
Zakah is Wajib (obligatory) on the monetary profits of the business, if they reach the Nisab (the minimum amount on which Zakah is due) and a Hawl (one lunar year calculated from the time a property reaches the minimum amount upon which Zakah is due) has passed since the time the money was obtained. The rate of Zakah is (Part No. 8; Page No. 229
A:
Zakah is Wajib (obligatory) on the monetary profits of the business, if they reach the Nisab (the minimum amount on which Zakah is due) and a Hawl (one lunar year calculated from the time a property reaches the minimum amount upon which Zakah is due) has passed since the time the money was obtained. The rate of Zakah is (Part No. 8; Page No. 229) one-quarter of one-tenth, i.e. 2.5%. If they are purely for investment, Zakah is also due on the profits of the shares in agricultural and dairy businesses and the like, if they reach the Nisab and one Hawl has passed on them. However, if these shares are intended for sale, the Zakah becomes due on both them and on their profits.May Allah grant us success. May peace and blessings be upon our Prophet Muhammad, his family, and Companions.