If one owns 40% of shares in a company

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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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