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Zakat And Tax
Aoa. My question is if someone gives zakat on his savings but doesn’t pay tax on his income to govt then his income will be Halal ? As gamidi sb said only tax that is applicable is zakat. Thanks
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10 Replies
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Zakat And Tax
updated 2 years, 10 months ago
4 Members
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10
Replies
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Zakat is not only on savings, but also on your earnings (salary, business, etc.).
The entire amount of zakat is obligatory upon you. You can deduct the taxes you pay from your total zakat.
This video might provide some clarification:
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Zakat Calculation
Following is a summary of zakat calculation. Please see the relevant chapter in Ghamidi sahab’s book Meezan for details.
On Earnings:
Income from something where both capital and labor are used – zakat is 5%.
Income from something where either capital or labor is used – zakat is 10%.
Income from Gift of God (e.g. found treasure) – zakat is 20%.
All of the above are due as soon as you receive the money.
On Assets:
On savings / assets zakat is 2.5%. This is due once per year after the minimum nisab has been met.
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Thank you for guidance. How we will know the percentage like 5 10 or 20 what we have to pay. Thank you
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The criteria is stated in my post above.
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Thanks for putting it beautifully. A bit more related to my first question that in situation like pakistan someone just pay zakat not tax that will be the situation then? I mean tax amount is more than 5 percent but someone just paying 5 percent zakat and not tax. Thank you
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The obligatory zakat is the right of the state. You have to fulfill that obligation. If you owe more zakat than what the state takes from you, only then you can spend it in other good causes of your choice.
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As-Salamu Alaykum! Are taxes paid in US (e.g. federal, state, city, property, school, etc.) considered as Zakat i.e. if my annual cumulative taxes are more than the Zakat I owe then should I still pay Zakat in US. Thanks in advance!
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Yes, that’s correct, the taxes you pay in the U.S. or any other country can be deducted from your zakat.
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Yes meaning taxes in US is equivalent to Zakat or yes meaning regardless of my taxes, I will still have to pay Zakat. If it is later then Zakat is not equivalent to taxes. Would you please clarify your answer. Thanks!
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Taxes you pay to the government can be adjusted against your Zakat obligation.
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