Zakah on the money of the company

Q 1: My company prepares an annual budget that reflects its financial position. It includes its assets and payables as of a certain date. Should Zakah (obligatory charity) be calculated on the company’s properties that exist at the end of the year or on those which existed at the beginning of the year and for which a Hawl (one lunar year calculated from the time a property reaches the minimum amount upon which Zakah is due) has passed? How can a Hawl be calculated given that the balances that existed at the beginning of the year change as a result of the business results of the company? A: A: The answer to this question needs to be explained through the following rulings: 1- As for the company's properties intended for sale, Zakah of 2.5% becomes due on them as per their value at the completion of a Hawl. 2- As for the company's properties intended for lease, there is no Zakah due on these properties themselves. (Part No. 8; Page No. 170

A: A: The answer to this question needs to be explained through the following rulings: 1- As for the company's properties intended for sale, Zakah of 2.5% becomes due on them as per their value at the completion of a Hawl. 2- As for the company's properties intended for lease, there is no Zakah due on these properties themselves. (Part No. 8; Page No. 170) However, Zakah of 2.5% becomes due on any rent received from them if it reaches the Nisab (the minimum amount on which Zakah is due), either by itself or by adding the same to other returns, upon the passage of a Hawl from the time of the contract. 3- There is no Zakah due on the company's properties not intended for trade, i.e., not intended for sale or lease, but for only acquisition and use, such as the company's headquarters, warehouses, showrooms, factories, machines, equipment, and tools designed to operate it, and the like that are necessary the company to carry out its activities. 4- As for the company's balances of gold, silver, and other coins and notes such as Saudi Riyals, Zakah of 2.5% becomes due on them if they reach the Nisab and a Hawl has passed on them. The Zakah due on their profits should be paid upon paying the Zakah due on their asset, even if a Hawl has not yet passed on the profits, since the Hawl for the profits is the same as the Hawl for the original asset.There are two ways to determine the completion of a Hawl on the balances: First: The earnings of the company should be dated, and the Zakah due on each sum should be paid upon the passage of a Hawl from the date it is received. Second: The company can appoint a certain time for paying the Zakah, such as Ramadan, provided that the Zakah due on a sum is not delayed once the related Hawl has been completed to preserve the rights of the poor and the other categories of Zakah recipients and discharge one's responsibility (Part No. 8; Page No. 171) by fulfilling this great Rukn (integral pillar) of Islam. 5- Any payables of the company do not render it exempt from paying the Zakah due on the properties in its possession. 6- Zakah becomes due on the receivables of the company whatever their terms may be upon the passage of a Hawl if they are due on a solvent and non-procrastinating debtor and the creditor is able to get their money back. However, if the debt is due on an insolvent debtor where its owner does not know whether they will get their money or not, or if it is due on a solvent debtor who is a procrastinator from whom the creditor cannot get their money back either because they do not have what proves their right before the judge or because they have such proof but the ruler does not assist them in obtaining it - such as the case in some countries that do not advocate people in obtaining their rights - Zakah is not Wajib (obligatory) on the creditor unless they take possession of their money at which point Zakah becomes due on it upon the passage of a Hawl.