Soldier of Allah 

3. Zakah on the revenues of other economic activities
 



Zakah on tender (gold, silver and coins), ornaments . etc
Zakah on tender (gold, silver and currency)
Zakah on ornaments and gold and silver objects
Zakah on securities
Zakah on shares
Zakah on debts

Zakah on Commercial and Industrial Commodities
Zakah on Commercial Commodities
Zakah on Industry
Zakah Payable by Commercial and Industrial Companies

Zakah on Crops and Fruits
Fruits and Other Crops Counted for Zakah
Zakah on Agricultural Products
The Amounts of Fruits and Other Crops Counted for Zakah
The Time When Zakah on Fruits and Other Crops Falls Due
The Estimation of Zakah on Fruits and Other Crops
Approximate Estimation of the Amount of Zakah Due on Fruits and Other Crops
The Amount of Fruits and Other Crops Exempt from Zakah
Deducting the expenditures of cultivation
Zakah on Fruits and Other Crops Produced on a Leased Land
General Rules Concerning Zakah on Fruits and Other Crops

Zakah on Cattle and Other Animals
Zakah on Cattle and Other Animals
Conditions of Zakah on Cattle
The Percentage and Amount of Zakah
Cattle Raised for Trade

Zakah on Mineral Resources
Zakah on Mineral Resources
Zakah on Buried Treasures

Zakah on Capital Goods
Zakah on Capital Goods

Zakah on other Activities
Zakah on Earnings from Official Jobs or Other Professions
Zakah on Ill-gotten Money



Zakah on tender (gold, silver and coins), ornaments . etc

Zakah on tender (gold, silver and currency)

Definition of legal tender:

The phrase 'legal tender' implies all currencies whether banknote or coins, no matter whether they belong to the country of the payer of Zakah or not.

Obligation of Zakah upon legal tender:

Zakah upon legal tender is supported by proofs from the Holy Qur'an, the Sunnah and the unanimous agreement of Jurists. The Holy Qur'an says, "And there are those who bury gold and silver and spend it not in the Way of Allah: announce unto them a most grievous penalty. On the Day when heat will be produced out of that (wealth) in the fire of Hell, and with it will be branded their foreheads, their flanks, and their backs, this is the (treasure) which ye buried for yourselves: taste ye, then, the (treasures) ye buried!" (Surah Al-Taubah No.9, Verse: 34-35).

As for the Sunnah, the Prophet said, "What you keep for yourself after paying the Zakah due upon it is not a hoard." The Prophet also said, "Owner of gold or silver who does not pay the poor due (Zakah) will have bitter punishment on the Day of Resurrection. Plates of fire would be beaten out for him; these would then be heated in the fire of Hell and his sides, forehead and back would be cauterized with them".

Throughout ages all Muslims unanimously agreed that Zakah is due on silver and gold, and thus the rule extended to all other types of currency by way of analogy. According to the statement No.9 issued in the third session of the Islamic Jurisprudence Academy in Jeddah: All paper currencies are considered potential money that has the purchasing power and receive all the legal rules applicable to gold and silver as regards interest-taking, Zakah, payment in advance and other rules.

The Nisab of legal tender

Zakah becomes duce once the property of a certain person reaches the minimum amount defined by Islamic law as liable to paying Zakah.

The minimum amount of gold or gold currency counted for Zakah is 20 mithqals (4.25 grams of fine gold).
The minimum amount of silver or silver currency counted for Zakah is 200 dirhams (595 grams). A silver dirham is equal to 2.975 grams.

The statement issued by the Islamic Research Academy, in its 2nd conference, stipulated that estimating the Nisab liable to Zakah on banknote, coins and commercial commodities should be based on their corresponding minimum amount of gold, since the value of gold is more stable than any other kind of property.

To determine the value of gold as opposed to the currency in use, one should consult an expert.

Some researchers claim that choosing gold as a criteria for determining the value of currency is attributed to its being assumed as a cover fund, even partially, to support the banknote issued by any given country. Besides its being the basis on which the value of banknote is determined, gold itself is considered an international currency and a standard criterion to measure the value of all currencies in the world. However, it is established that the value of gold may vary in accordance with the change of time or markets.

According to the Hanafi Juristic School, the value of gold may be added to the value of silver so as to complete the minimum amount counted for Zakah. If still beyond the minimum amount, the value of commercial commodities may also be added. The Nisab liable to Zakah on cash, banknote and coins is to be determined according to its corresponding value of gold (85 grams of fine gold), based on the current rates of the country in which the payer of Zakah is resident.

In case the gold is not fully pure, Zakah is to be paid on the net weight of gold after leaving out the weight of other substances.

On the 18 carat gold, for example, Zakah is to be paid after leaving out one-fourth of the total weight, representing 6 carats out of 24 carats.

On the 21 carat gold, Zakah is to be paid after leaving out one-eighth of the total weight, representing 3 carats out of 24 carats.

The same applies to the silver that is not fully pure.

Requisites of Zakah on gold, silver and currencies:

They are the same as those stipulated to pay Zakah, which have been explained earlier. (See: Requisites of paying Zakah)

The amount of Zakah payable on silver, gold and currencies:

The mount payable is a quarter of a tithe (2.5%).

How to calculate in cash the amount of Zakah on gold and silver

One who prefers to pay Zakah on gold and silver in cash may multiply the amount counted for Zakah by the rate of grams. This will give the amount of Zakah in cash. For example, in case the amount of gold liable to Zakah is 25 grams and a gram value is 4 dinars, we may reach the amount of Zakah payable in cash by making use of the following equation: The amount of Zakah = 25 grams (of gold) x 4 dinars (the rate of gram) = 100 dinars.
 

Zakah on ornaments and gold and silver objects

Zakah on ornaments and gold and silver objects:

Though ornaments worn by women are not counted for Zakah, there must be criteria for defining the value of these ornaments. Such value is estimated according to the standard of living. However, ornaments kept for purposes other than wearing are inevitably counted for Zakah. Likewise all ornaments that are not in current use due to their being out of fashion are counted for Zakah.‏

Zakah is due on fine gold and silver in case either of them reaches a certain weight. Value fluctuation of gold and silver due to molding, manufacturing or containing precious stones is overlooked.‏

However, gold and silver invested in trade are estimated according to their value, including molding, manufacturing and precious stones.

Zakah is obligatory on gold and silver ornaments unlawful to wear:

Such unlawful ornaments may include gold bracelets and watches worn by men and the ornaments for men when used by women.

Zakah is obligatory on unlawful gold or silver ornaments so long as they reach the allotted Nisab, or when added to other jewelry. The Nisab of gold and silver possession has been previously explained. Legal tender may be added to the value of gold and silver in calculating Zakah money. Likewise, items of commercial commodities may be added to one another.

The amount of Zakah due on gold and silver ornaments is 2.5%.
 

Zakah on securities

Legal judgment concerning dealing in securities:

A security represents a part of a loan owed by the company or the body that gives this security. A fixed interest, which is not affected by the company's profits or losses, is to be offered on this security. However the company is obliged to repay the loan at a determined time. A security has a nominal value, that is the original value, and a market value, which is determined by demand and supply.

Dealing in securities is prohibited as it brings about a usurious interest. Likewise, disposing of securities by selling or buying is regarded as selling the debt to other than the debtor, which is not lawful.

How to pay Zakah on securities?

Though dealing in securities is not lawful, Zakah is due on their par value, which is to be added to other kinds of property, after reaching the Nisab and the lapse of a full year. The payable amount of Zakah is a quarter of the tithe. All usurious interests gained from securities are to be spent in charitable purposes, in a way to assist the common good except in building mosques and printing copies of the Holy Qur'an.

However, this spending will be regarded a means to get rid of the ill-gotten gain, but not a Zakah. One is not allowed to spend thereof on himself or on his household. It is recommended that the owner should dedicate it to those afflicted by famines, strains, disasters and the like.
 

Zakah on shares

Legal judgment concerning dealing in shares:

A share indicates any of the equal interests or rights into which the entire capital stock of a corporation is divided. Holding shares is regularly evidenced by one or more certificates. It is liable to gain or loss. A shareholder is free to sell his shares whenever he likes.

A share has a par value, determined when first issued, and a market value determined on the basis of supply and demand in the banknote markets in which the shares are circulated.

Holding shares in a joint-stock company is judged on the basis of the kind of company activities. Thus, sharing in a company that has usurious dealings or produces prohibited commodities such as alcoholic drinks is unlawful. Likewise, sharing in a company that applies certain prohibited kinds of transactions such as usurious on credit sale or aleatory transactions is also unlawful.

How to pay Zakah on shares?

In case the company pays Zakah on its shares, the shareholder is not obliged to pay Zakah on his shares to avoid twice giving Zakah.

Otherwise, a shareholder will be obliged to pay Zakah on his shares as follows:

In case the shareholder exploits his shares in trade, the amount of Zakah due on his shares would be 2.5%, according to the market value at the time Zakah becomes due.

However, if shares are invested to obtain annual revenues, Zakah is paid in the following way:

a) If the shareholder managed to examine the accounts of the company and know the amount of Zakah due on his shares, he would have to pay a quarter of the tithe (2.5%) as Zakah on this basis.

b) If he does not have knowledge of the company accounts, he may simply add the share revenues to the total sum of his property counted for Zakah and pay a rate of 2.5% as Zakah after the lapse of a full year since the wealth has reached the allotted Nisab.
 

Zakah on debts

A debt is defined as an amount of money owed by someone. It is counted for Zakah in case it is recoverable. After repayment, money is to be added to the total sum of properties counted for Zakah. However, the debt owed by the payer of Zakah is to be excluded from the total sum liable to Zakah as follows:

a) The amount of debt owed by the payer of Zakah is to be excluded from the portion liable to Zakah, provided that he remains in debt before Zakah falls due and finds no other property not liable to Zakah that exceeds his basic needs to repay his debt therefrom.

b) A payer of Zakah who has more than one type of property counted for Zakah may specify a certain type of these properties to repay his debt therefrom and dedicate the rest, which should be more beneficial to the poor, to Zakah.

c) In long term, installment debts, like housing installments, and other debts that finance fixed assets, which are not counted for Zakah, the payer deducts the amount of annual installment all at a time, then calculates the total sum of the remaining property and pays Zakah on it if it reaches the Nisab of Zakah.

d) Loans that are invested to finance any commercial business are to be deducted from the total sum liable to Zakah, in case the payer does not have fixed assets exceeding his basic needs.

e) Loans invested to finance industrial projects are to be deducted from the total sum of properties counted for Zakah, in case the debtor has no fixed assets exceeding his basic needs to cover these loans. However, in case there are fixed assets to cover these loans, they will not be deducted from the total sum of the properties counted for Zakah.

In case the amount of these fixed assets falls short from covering the whole amount of loans, the remaining uncovered portion is to be deducted from the total sum counted for Zakah. In case of deferred investment loans, only the amount of the annual installment, which falls due, is deducted.
 

Jurisprudence of Zakah on Commercial and Industrial Commodities
 
Zakah on Commercial Commodities

This term stands for all properties owned with the aim of investing them in trade. Ownership may be realized by importing or buying from the national market.

These properties include real estate, foodstuff, agro products, cattle ... etc. Also, these properties may include commodities in a shop owned by a person or more.

Difference between capital goods and commercial commodities

Capital goods denote those kept for private use, and not for trade, usually termed in accounting as fixed assets. They are utilized to bring forth production, such as machines, buildings, wagons, equipment, vessels, depositories, racks on which articles are exhibited, desks, furniture ... etc. These kinds of properties are not counted for Zakah.
However, commercial commodities, termed in accounting as circulated assets, intended to be invested in trade, such as commodities, articles, machines, wagons, lands, are liable to Zakah, in case they meet the conditions of Zakah.

Conditions for paying Zakah on commercial commodities

In addition to the conditions previously mentioned in Zakah on cash, there are two additional conditions:

1. Owning the commodity for return

The commodity should be bought in exchange for money, or bartered for another commodity or as a substitute for a debt, whether falling due or deferred. The same applies to articles taken by a woman as dowry, or the deferred amount of dower in case of separation from her husband.
However, the property owned by means of inheritance or donation, the article returned to the seller for a defect, or arable land is regarded as assets and Zakah due on it will be estimated on this basis.

2. Intention

This means that the owner of a property, when first buying it, should have the intention of investing it in trade. Thus, the intention is the key factor that decides whether the property is owned for private use or for trade. Fore example, a car first bought for private use, but intended to be sold if it sells well, will not be considered a commercial commodity, thus not counted for Zakah. However, a merchant who buys a number of cars for trade but keeps one for private use, this one will also be counted for Zakah, depending on his original intention.

In case one changes his mind to dedicate a commodity for private use instead of investing it in trade or vise versa, the second intention is to be taken into account.

The following activities are to be appended to commercial commodities as regards their liability to Zakah:

a) Commercial projects including purchase and sale activities carried out by small to medium businesses, speculation companies, limited or stock companies ... etc.

b) Commissioned activities carried out by brokers, middlemen and agents.

c) All kinds of money exchange and investment.

How to pay Zakah on commercial resources?

When the time of Zakah falls due, the commercial body, whether individuals or companies, should make an inventory and estimate the actual value of the commercial assets and goods. The value of these goods together with the cash money and total of the recoverable debts are considered the amount of commercial resources on which Zakah is due, after leaving out the amount of debts owed by the commercial body. Zakah is to be taken at the rate of 2.5%.

Imam Abu `Ubaid reported that Maymun bin Mahran said, "When Zakah falls due, a Muslim should see his property, whether cash or commodities, and estimate it in cash. If you owe debts to others, calculate their value and take them out of the total property and pay Zakah on the residual."

The rate considered upon estimating the value of commercial assets

Unlike the traditional accounting method which applies the lower rate, the value of commercial assets is to be estimated according to the current market value at the time when Zakah falls due, no matter whether it is higher or lower than the cost price.

As for commercial commodities, they are estimated according to the wholesale price, even though they are sold in retail. This is the view adopted by the Jurisprudence Academy in Mecca.

Should Zakah be paid in cash or out of the commodities?

Originally, Zakah on commercial commodities must be paid in cash. It is reported that `Umar bin Al-Khattab (may Allah be pleased with him) said to Hamas, "'Give Zakah on your wealth.' Hamas said, 'I have no trade other than leather quivers.' Whereupon `Umar said, 'Estimate their value and pay Zakah on them accordingly.'" This is because the cash is better for the poor as it helps him meet his needs however variant.

However, a merchant can pay Zakah out of the commodities in which he is dealing as a means of evading hardship and in case of recession.

Debts owed by others to a merchant

These debts are divided into two kinds:

1. Recoverable debts: This is a debt owed by one who recognizes it and is able to pay, or a debtor who, though denies the debt, there is an evidence against him that in case he stands for trial he will be obliged to pay it. This kind of debts is also known as good debts. Thus, the amount of such kind of debts is to be added to the total sum on which Zakah is payable.

2. Irrecoverable debts: This is a debt owed by one who repudiates it, while there is no evidence against him, or by a debtor who recognizes the debt but often procrastinates the repayment or suffers insolvency. Such debts are known as doubtful debts, and are not counted for Zakah unless they are actually repaid. Once this debt is paid, Zakah is payable on it for one year only, no matter how many years it has been owed by the debtor.
 

Zakah on Industry

Industrial activities have more in common with commercial activities than other activities. Industry can in no way be separated from commerce. Rather, the industrial activity in general is based on buying raw material and selling them after manufacturing. Thus, all the rules of Zakah on commercial commodities are applicable to industrial activities. As for institutions that manufacture articles for the benefit of other clients, the tools utilized by such institutions are not considered as commercial commodities, e.g., entrepreneurship companies, iron and steel companies, goldsmiths and carpenters. However, in case such industrial companies buy raw materials and manufacture them with the aim of investing them in trade for their own benefit, such materials are to be considered as commercial commodities, which will be counted for Zakah after deducing the manufacturing expenditures.
Industrial activities are divided into two types:

The First:

This type includes buying already manufactured commodities with the aim of investing them in trade. The value of such commodities is estimated according to the market value. Then, through adding their value to the cash money and the external good debts, after deducing the debts owed by the payer, the amount of Zakah can be estimated.

The Second:

This type includes the commodities manufactured by the payer of Zakah. In this instance, Zakah is paid only on the raw material before manufacturing and the materials added while processing, that will be a major component of the article after manufacturing. In the case of raw materials that remained in possession for a full year, or added into the duration calculated for a similar Nisab, such as cash money or commercial commodities, Zakah will be estimated according to the first duration, without calculating a new duration of a full year. This can be represented in a raw cloth that remains in factory for six months then made clothes. The amount of Zakah liable on both types is a rate of 2.5%.

Zakah Payable by Commercial and Industrial Companies

1. Collecting Zakah from commercial and industrial corporations depends on dealing with them as individual entities, provided that:

a) There is an issuance of a binding legal provision to pay Zakah.

b) It should be stipulated in the company bylaws.

c) A decision to this effect is taken by the corporation's general assembly.

d) The approval of all shareholders (to authorize the administration of corporation to pay Zakah on their behalf). This trend relies on the principle of Khultah that is supported by the Sunnah as regards Zakah on cattle. Some juristic schools were in favor of extending the principle of Khultah to all kinds of Zakah. This view was adopted by the First Conference on Zakah. However, in case none of the four above-mentioned conditions is realized, the corporation should estimate the amount of Zakah payable on its properties, then provide a sheet on an annual basis containing the amount of Zakah due on each individual share for easy reference by the shareholders.

2. A corporation should calculate the Zakah due on its properties in the same way as an individual entity.

The corporation should estimate the mount of Zakah payable on its properties according to their type: cattle, crops, commercial commodities ... etc.

Note: Zakah is not due on shares owned by the public treasury, charitable endowments, institutions administering Zakah or charitable associations.


Zakah Payable by Commercial and Industrial Companies

1. Collecting Zakah from commercial and industrial corporations depends on dealing with them as individual entities, provided that:

a) There is an issuance of a binding legal provision to pay Zakah.

b) It should be stipulated in the company bylaws.

c) A decision to this effect is taken by the corporation's general assembly.

d) The approval of all shareholders (to authorize the administration of corporation to pay Zakah on their behalf). This trend relies on the principle of Khultah that is supported by the Sunnah as regards Zakah on cattle. Some juristic schools were in favor of extending the principle of Khultah to all kinds of Zakah. This view was adopted by the First Conference on Zakah. However, in case none of the four above-mentioned conditions is realized, the corporation should estimate the amount of Zakah payable on its properties, then provide a sheet on an annual basis containing the amount of Zakah due on each individual share for easy reference by the shareholders.

2. A corporation should calculate the Zakah due on its properties in the same way as an individual entity.

The corporation should estimate the mount of Zakah payable on its properties according to their type: cattle, crops, commercial commodities ... etc.

Note: Zakah is not due on shares owned by the public treasury, charitable endowments, institutions administering Zakah or charitable associations.


Zakah on Fruits and Other Crops
 
Fruits and Other Crops Counted for Zakah

According to Abu Hanifah and other jurists who stuck to the outward meanings of the related Qur'anic and Sunnah texts, Zakah is due on all crops and fruits grown with the aim of investing the arable land. A Qur'anic verse says, "O ye who believe! Give of the good things which ye have (honorably) earned, and of the fruits of the earth which We have produced for you." (Surah Al-Baqarah No.2, Verse: 267). The Prophet (peace be upon him) said, "One-tithe is due as Zakah on plantations irrigated by the water of rain or springs, or which draw water from the inner layers of the earth (by its roots), and half of one-tithe is due as Zakah on the plantations irrigated by tools."

However, plants that grow without human efforts, such as wood trees, grass, reeds ... etc. are not counted for Zakah, unless they are intended to be invested in trade. In such case they will be treated in the same way as commercial commodities.
 

Zakah on Agricultural Products

Agricultural products are not counted for Zakah unless they are intended to be invested in trade. In such case they are treated in the same way as the commercial commodities.
 

The Amounts of Crops and Fruits Counted for Zakah

According to a genuine hadith, "A quantity less than five Wasqs is not counted for Zakah." Now the five Wasqs equal 653 Kilograms of wheat or other grains. The payer of Zakah should pay attention to the various weights of the different kinds of foodstuff. The Nisab of dried food should be calculated after not before the process of drying is complete.
 

The Time When Zakah on Crops and Fruits Falls Due

Unlike other kinds of property, Zakah on crops and fruits does not become due after the lapse of a full year since reaching the Nisab. Rather, the determining factor here is the agricultural season and the crop. This is confirmed by the Qur'anic verse, "But render the dues that are proper on the day that the harvest is gathered." (Surah Al-An`am No. 6, Verse: 141).

Thus, Zakah will be due on each crop produced by the land at the same year.

The time when Zakah on crops and fruits becomes due begins when they are ripe. However, crops and fruits should first be gathered and piled in the threshing floor. Thus in case the yield is wasted before piling, unintentionally or due not to negligence, no Zakah is due on it. Zakah on crops and fruits, however, is due on the owner who sells the ripe yield of his land or gives it in donation or the one who dies after the crops are ripe. But in case the owner dies before the crops are ripe, Zakah will be incumbent on the buyer or the donee or the heir of the owner.


The Estimation of Zakah on Crops and Fruits

The amount of Zakah payable on crops and fruits varies according to costs spent and effort exerted in irrigation as follows:

- In case of costless, comfortable irrigation the amount of Zakah would be 10%.

- In case of irrigation with the aid of a costly method, such as digging a well and bringing up water automatically, or buying water, the amount of Zakah would be 5%.

- In case irrigation includes the two probabilities, the amount of Zakah would be estimated according to the major method of irrigation. But in case of equality, a fixed amount of 7.5% of Zakah would be given.

- When it is difficult to decide, an amount of 10% of Zakah would be paid.
 

Approximate Estimation of the Amount of Zakah Due on Fruits and Other Crops

Sometimes the owner of fruits and other crops has no time to estimate the yield of his land by measuring. In such case he is permitted to have this yield estimated by an expert and pay the mount of Zakah accordingly. According to Al-Awza`i and Al-Laith, this method of estimation can be applied to all kinds of fruits and crops. Estimating the amount of Zakah is carried out after the fruits and other crops are ripe, while paying it is performed after the process of drying (as in the case of dates and raisins). An amount of one-forth or one-third is to be exempted from the obligation of paying Zakah and left for the benefit of the owner. This is to be left to the expert's discretion.
 

The Amount of Crops and Fruits Exempted from Zakah

The owner of crops and fruits is not obliged to pay Zakah on the following:
a) The amount consumed by the owner while the crops or fruits are still raw.
b) The amount consumed by the beasts utilized in cultivation.
c) The amount consumed by the wayfarers.
d) The amounts donated as a charity.
 

Deducting the expenditures of cultivation

According to Ibn `Abbas and other jurists, all expenditures of ploughing, planting, fertilizing, and harvesting are to be deducted from the total amount counted for Zakah, provided that these expenditures do not exceed the rate of one-third.
 

Zakah on Crops and Fruits Produced on a Leased Land

A lessee of a land has to pay Zakah on its produce of fruits and other crops. The owner of the land, on the other hand, will add the leasing value to other cash money in his possession and pay Zakah on them at the rate of 2.5%.

In case the produce of land is shared due to a contract or crop-sharing (which implies that the owner appoints another person to take care of cultivating or irrigating the land in return for a portion of its yield), the Zakah is due on both parties once the yield reaches the Nisab.
 

General Rules Concerning Zakah on Fruits and other Crops

1. Crops and fruits of like kind are to be added and estimated together, while those of different kinds, like fruits and vegetables, are to be estimated separately.

2. In case the crop varies in quality, Zakah is given on the basis of the average, but not lesser, rate.

3. The value of plantations grown in different soils are to be added together, so long as they belong to the same owner.

4. Though the owner of land should pay Zakah from the crop, some scholars maintain that it is permissible to pay it in cash according to the market value.
 

Zakah on Cattle and Other Animals
 
Zakah on Cattle and Other Animals

The term cattle includes camels, cows (including buffaloes) and sheep (including goats).
 

Conditions of Zakah on Cattle

There are some conditions that Zakah on cattle is not due unless all of them are realized. These conditions were laid down with the aim of easing restrictions on the owner, so that he gives Zakah willingly. Thus, Zakah achieves the noble aims for which it is ordained. These conditions are:

1. Reaching the Nisab

The minimum amount (Nisab) of camels counted for Zakah is five camels. While no Zakah is due on less than forty sheep, the minimum amount of cows counted for Zakah is thirty.

2. The lapse of a full year

This implies that Zakah is not due unless the property remains in the possession of its owner for a full year right from the day it reaches the minimum amount counted for Zakah. This is confirmed by the Prophet's hadith in which he maintained, ''Zakah is not due on a property unless after the lapse of a full year.''

In case the cattle bear offspring during the year, the value of the offspring is to be added to the total value of cattle. If the possession is interrupted during the year due to selling cattle or bartering them, a new year is to be calculated from the day in which the cattle are sold or bartered, provided that the owner did not do that with the intention of evading the payment of Zakah.

3. Cattle should not be exploited in cultivation

Cattle exploited in cultivation are not counted for Zakah. This is confirmed by the Prophet's saying, ''Nothing is due on the cattle used in cultivation.''
 

The Percentage and Amount of Zakah

Zakah on camels

The Nisab and amounts of Zakah due on camels are illustrated as follows: 
No. of Camels The amount of Zakah due
From 1 To 4 No Zakah is due
From 5 To 5 One sheep
From 10 To 14 Two sheep
From 15 To 19 Three sheep
From 20 To 24 Four sheep

While there is Zakah due on camels numbering from 1 to 24, giving some of them as Zakah may affect the payer negatively, so giving sheep as Zakah is made as compromise.  
 
No. of Camels
The amount of Zakah due
From 25 To 35 A she-camel between 1 and 2 years
From 36 To 45  A she-camel between 2 and 3 years
From 46 To 60  A she-camel between 3 and 4 years
From 61 To 75  A she-camel between 4 and 5 years
From 76 To 90 Two she-camels between 2 and 3 years
From 91 To 120 Two she-camels between 3 and 4 years
From 121 To 129 Three she-camels between 2 and 3 years
From 130 To 139 A she-camel between 3 and 4 years and two she-camels between 2 and 3 years
From 140 To 149 Two she-camels between 3 and 4 years and a she-camel between 2 and 3 years
From 150 To 159 Three she-camels between 3 and 4 years
From 160 To 169 Four she-camels between 2 and 3  years
From 170 To 179 Three she-camels between 2 and 3 years and a she-camel between 3 and 4 years
From 180 To 189 Two she-camels between 2 and 3 years and two she-camels between 3 and 4 years
From 190 To 199 Three she-camels between 3 and 4 years and a she-camel between 2 and 3 years
From 200 To 209 Four she-camels between 3 and 4 years or five she-camels between 2 and 3 years
 
Any increase beside the above-mentioned amounts is to be calculated as follows:
  •  On every increment of 40 camels, a she-camel between 2 and 3 years is due as Zakah.
  •  On every increment of 50 camels, a she-camel between 3 and 4 years is due as Zakah.
Zakah on cows

The Nisab and amounts of Zakah due on cows are illustrated as follows:
 
No. of Cows
The amount of Zakah due
From 1 To 29 No Zakah is due
From 30 To 39 A one year old bull
From 40 To 59 A two year old cow
From 60 To 69 Two cows or bulls aging 1 year
From 70 To 79 A cow aging 2 years and a bull aging 1 year
From 80 To 89 Two cows aging 2 years
From 90 To 99 Three cows aging aging 1 year
From 100 To 109 A cow aging 2 years and 2 bulls aging 1 year
From 110 To 119 Two cows aging 2 years and a bull aging 1 year
From 120 To 129 Three cows aging 2 years or four bulls aging 1 year
 
Any increase beside the above-mentioned amounts is to be calculated as follows:
- On every increment of 30 cows, a cow or bull aging 1 year is due as Zakah.
- On every increment of 40 cows, a cow aging 2 years is due as Zakah.
Zakah on sheep

The Nisab and amounts of Zakah due on sheep are illustrated as follows: 
No. of Sheep
The amount of Zakah due
From 1 To 39 No Zakah is due
From 40 To 120 A ewe
From 121 To 200 2 ewes
From 201 To 399 3 ewes
From 400 To 499 4 ewes
From 500 To 599 5 ewes
 
  • On every increment of 100 sheep, a ewe is due as Zakah.


Cattle Raised for Trade

The cattle raised for trade will be treated exactly as the commercial commodities; Zakah on them will be calculated on the basis of their value not number. Therefore, Zakah falls due on the cattle if their value reaches the minimum amount of money liable to the payment of Zakah (a value equal to 85 % of pure gold). In this case, the cattle owner should add it to what he possesses of money and commercial commodities and pay 2.5 % as Zakah on it provided that it meets the conditions of the obligation to pay Zakah on commodities.

However, in case the value of cattle does not reach the minimum amount counted for Zakah when estimated as commercial commodities, but do reach it when estimated on the basis of their number, the numerical method explained earlier is to be applied.
 

Zakah on Mineral Resources
 
Zakah on Mineral Resources

a) Mineral resources consist of all minerals extracted from the inner layers of the earth or the seabed, whether liquids as petroleum, solid as salt or gases like butane, and whether metallic like iron or non-metallic like sulfur.

b) The Nisab of minerals liable to Zakah is estimated in accordance with the value of the Nisab of gold, i.e. 85 grams.

No matter whether the minerals are extracted one at a time or in parts. In case the work ceases because of emergency such as repairing equipment or due to a strike on the part of the workers, the extracted minerals are to be added together in a way to complete the minimum amount counted for Zakah.

However, in case the work ceases due to the transfer of the activity or for another reason, then resumed again, this interruption is to be considered in calculating the minimum amount counted for Zakah in a way that the new extracted amounts of minerals will not be added to the amounts extracted before the halt.

c) Zakah on minerals is not paid on annual basis; it is promptly due on any extracted and filtrated portion of minerals so long as it reaches the Nisab liable to the payment of Zakah.

d) According to the majority of jurists, Zakah on minerals is to be paid at the rate of 2.5%.

e) The term 'minerals' includes all minerals extracted from the earth or the seabed. Zakah on pearls, coral, fish, and amber is to paid in the same way as commercial commodities.
 

Zakah on Buried Treasures

Zakah on treasures extracted from the earth is not paid on annual basis.

It is to be paid at the rate of 20% immediately after the discovery. This is the view adopted by the majority of jurists, as it is supported by the Prophet's hadith, "On treasures extracted from the earth one-fifth is due as Zakah."
 

Zakah on Capital Goods

Capital goods stand for all properties that, though not invested as trading objects, yield a profit to the owner through hiring. These goods include real estate, trucks, steamers and planes.

Treated as permanent assets, these goods are not counted for Zakah. Rather, Zakah is to be paid on their revenues by adding them to the mount of Zakah payable on the owner's cash money and commercial commodities after the lapse of a full year at the rate of 2.5%. This view is applied by the majority of jurists and agreed upon by the Fatwa and Legal Supervision Authority, the Kuwaiti Zakah House.
 

Zakah on Other Means of Income
 
Zakah on Earnings from Official Jobs or Other Professions

Earnings stand for all that is earned. In case a person gets certain gains beside the already existing properties counted for Zakah before the lapse of a full year, whether these gains are of the same kind of the existing properties or not, such as money gained from trade or the offspring produced by cattle, the earned property is to be added to the already existing properties. According to Abu Hanifah, Zakah is to be paid on both after the lapse of a full year, regardless whether the recently earned property was the yield of the already existing properties or not. As for the property earned of kind other than that already existing, e.g. a person who has a property in the form of cash money and then earns a property in the form of cattle, the newly earned property is not added to the already existing property. Rather, it is to be regarded as a separate property with separate calculation as regards the amount of Zakah and the duration after which Zakah is payable.

All savings from wages or salaries received by workers or employees are to be added to the amount of money already in the possession of the worker or the employer, and, after reaching the Nisab and the lapse of a full year, Zakah is to be paid on the total sum. A cautious person may resort to calculating the approximate amount he expects to save and give it in Zakah in advance, then calculate the total sum of his properties at the end of the year and pay any outstanding amounts. Any increase paid above the amount of Zakah will be regarded as a voluntary charity.
 

Zakah on Ill-gotten Money

1. Unlawful property indicates all that is legally forbidden to be owned or invested. The forbiddance may be attributed to the harmful nature of the object itself such as carrion, alcoholic beverage, and pork, or to the improper way through which this property is acquired, such as ravishment, usury, bribery, etc.

2. a) Gaining property through an illegal way is not considered an acknowledged way of ownership. The acquirer has to pay it back to its original owner or to his heirs in case the former dies. In case it is impossible to identify the original owner, the property is to be disposed of in charitable purposes. It will be considered a charity whose reward goes to the original owner.

b) Money received in return for carrying out a prohibited activity is to be disposed of in charitable purposes, but not paid back to its original owner.

c) Money received from an employer who insists on dealing in unlawful transactions, such as usurious dealings, is to be disposed of in charitable purposes, but not returned back to him.

d) In case it is impossible to pay back the same unlawful property, the acquirer may pay back anything similar to it or its value to the original owner. In case it is impossible to identify the original owner, the property is to be disposed of in charitable purposes. It will be considered a charity whose reward goes to the original owner.

3. The property declared unlawful due to a blemish in its nature is not counted for Zakah, since it is legally considered as valueless. It should be disposed of according to the ways dictated in the Shari`ah.

4. The property declared unlawful due to its being acquired through unlawful means is not counted for Zakah due to the absence of the condition of full possession. In case this property is returned to its original owner, it will be counted for Zakah for one year only. This is the unanimously held opinion regarding this issue.

5. It is no use paying Zakah on unlawful property so long as it is not paid back to its original owner. Instead the holder should pay it back to the original owner if he knows him. Otherwise the property is to be disposed of in charity on his behalf.
 

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