Zakah is due on net profits plus

Q: One of my brothers has an automatic plane. He does not know how to pay the Zakah due on the money he gains from it, bearing in mind that he has high-costing machinery and workers to whom he pays monthly salaries. Moreover, he works for people constructing new buildings, some of whom pay off dues in long-term installments, which makes it very difficult for my brother to calculate money on which Zakah might be due.

A: Whenever a Hijri year passes, he should calculate the cash and other properties he has, such as wood prepared for trade, plus debts due on others to him and should then pay the (2.5%) Zakah due on the total. As for work tools (Part No. 9; Page No. 362) such as machinery, equipments and the like, there is no Zakah due on them. However, he should seek the help of accounting experts to calculate the Zakah due on him.May Allah grant us success. May blessings and peace be upon our Prophet Muhammad, his family and Companions!