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Forums Forums Islam And State Zakat Obligation In A Non-Muslim Majority Country

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  • Zakat Obligation In A Non-Muslim Majority Country

    Posted by Aftab Nazir on January 31, 2025 at 1:12 pm

    Assalam o Alaikum!

    My question in reference to Ghamdi sahib’s comments in one of his YouTube videos that Islamically there is only Zakat for the state and no other taxes. My question is if you already paid nearly 50 % tax on your income every month to the state. Is zakat still an obligation towards state? And what if state is a non Muslim state? JazakAllah

    Wasalam

    Aftab Nazir replied 3 weeks ago 2 Members · 5 Replies
  • 5 Replies
  • Zakat Obligation In A Non-Muslim Majority Country

    Aftab Nazir updated 3 weeks ago 2 Members · 5 Replies
  • Umer

    Moderator January 31, 2025 at 3:32 pm

    Whether it is a Muslim or a Non-Muslim state, taxes paid can be adjusted against zakat obligation of a Muslim. In case a person has paid more taxes than his Zakat obligation, then his obligation is considered as paid. One can choose to carry forward the excess taxes paid to the next year to adjust against next year’s zakat obligation.

    Please watch:

    https://youtu.be/c2smJROWtY0

  • Umer

    Moderator January 31, 2025 at 3:32 pm

    Please also refer to the video below from 19:25 to 22:03

    https://youtu.be/q4sNpNBqV8g?t=1165

  • Aftab Nazir

    Member January 31, 2025 at 4:21 pm

    I got bit confused after listening Dr. Shahzad sahib’s answer to one question. We receive our salary after let’s say 50 % taxation on gross. Now we still have savings from our net income after living expenses. Do we still pay 2.5% on that savings?

    • Umer

      Moderator January 31, 2025 at 4:59 pm

      Yes, because these are two different heads of Zakat.

      1) Zakat on Production or Earning (i.e. Salary at 10%)

      2) Zakat on Wealth/Savings (Zakat at 2.5% of year-end wealth)

      Consider following example, which will simplify the concept for you:

      You received Salary of $100 every month for 12 months = $1200 yearly, the zakat due on this is $10 per monthly salary (at 10%) or $120 Yearly (assuming that total yearly Salary is above Nisab because amount of production/earning/wealth below Nisab is exempt from Zakat). You paid $150 in government taxes related to Salary for the whole year.

      Now come year-end (which is one date in the year fixed by you for calculation of Zakat on wealth), your Zakat on wealth comes out to be $200 (at 2.5%). You paid other government taxes of $200 throughout the year.

      Your gross Zakat obligation = 120+200 = $320

      Total paid in taxes= 150+200 = $350

      Net Zakat obligation = 320-350 = negative $30

      In this scenario, you have paid more in taxes than your zakat obligation, hence you are not required to pay any Zakat this year. You can carry forward this $30 of more taxes paid this year for adjustment against Zakat obligation of next year.

  • Aftab Nazir

    Member January 31, 2025 at 5:06 pm

    جزاک اللہ! Got it.

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