Ref no: 0390#
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Date: Thursday, September 29, 2011 |
Category
Zakaat
Title
If one owns 40% of shares in a company
Question
If one owns 40% of shares in a company, then how is Zakaat calculated on his share?
Answer
Muhtaram / Muhtaramah
In the Name of Allāh, the Most Gracious, the Most Merciful.
As-salāmu ‘alaykum wa-rahmatullāh wa-barakātuh.
If the company is a trading investment then Zakaat is payable on the capital amount as well as the dividends. If the company is not a trading investment and only receives income, for example from rentals of properties then Zakaat is liable only on the dividends.
In this case, as a shareholder of a trading investment, Zakaat is due at 2.5% of the 40% shareholding on the capital, as well as on the dividends.
And Allah knows best
Darul Iftaa
Madrasah Inaa’miyyah
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