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Zakat On Business Investments
In Zakat on Production business inventory and investment that anyone has done is not included in Zakat but in Zakat ul Maal these things are considered. Kindly clarify this.
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6 Replies
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Zakat On Business Investments
updated 4 weeks ago
3 Members
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6
Replies
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Zakat on production and zakat on assets are two different types of zakat.
Zakat on production is the zakat due on production, for example grain and rice. This also includes monies earned for example through salaries, services, and contract work. The means of production, for example, the farming land, factories, etc. are exempt from zakat. You must also meet the minimum production nisab set by your state. In the case where your state does not provide any nisab, you can use the standard nisab of 653 kilograms of dates or equivalent value. If your earnings involve both labor and investment, then the amount due is 5% of the production. If your earnings involve one of labor or investment, then the amount due is 10% of the production. This zakat is due as soon as the production is harvested or monies are received in the case of salaries, services, etc.
Zakat on assets is due once every year. Your state may determine this day, or you can set a date on your calendar and pay your asset zakat on the same day every year. This zakat is due on all of your cash, as well as the current value of any investments, precious metals, real estate, business inventory, and other assets that you own on the day your zakat is due. Means of production and items of personal use are exempt. Your state may also decide to add other exemptions as per the situation. You must meet the minimum asset nisab set by your state for your assets to be zakat eligible. In the case where your state does not provide any nisab, you can use the standard nisab of 642 grams of silver or equivalent value. The amount due is 2.5% of the total sum of the current value of all your assets.
Very soon we will have a zakat calculator within Ask Ghamidi Insha’allah. Stay tuned!
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That’s great . Zakat Calculator will be very beneficial. Looking forward to it
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@UmerQureshi I have started online business on Amazon in UAE. I am confused about the zakat. Would the current inventory of goods that I sell on amazon is due for 2.5% zakat or not? And also I don’t have plot but have files of plots and I am paying installments so I would pay zakat on 2.5% of collective amount of all installments?
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Yes 2.5% will be applied to the value of stock-in-trade and plots or files kept as investment for capital appreciation.
Please see for further details:
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Inventory value will be perceived as its sale price or the landing cost?
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Their market value as at the date when Zakat becomes due – just the way we do with gold or silver.
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