FIQH of Zakaah: Understanding the Pillars of Third Pillar (9 of 9)

Zakaah on Rent

Property that is prepared to be rented out, there is no zakaah on it; rather zakaah is to be paid on the rent, when one year has passed, if it reaches the nisaab by itself or when added to other wealth. But if one spend this rent and do not save any of it, then there is no zakaah on it. Zakaah is due on the rent that is paid on properties but subject to two conditions: that it reaches the minimum threshold at which zakaah becomes due (nisaab); and that one full hijri year has passed (since acquiring it). And, the year starts from when one sign the contract, whether the rent is paid in advance at the beginning of the year or at the end of the year. al-Mughni (4/271), Majmoo’ Fataawa al-Shaykh Ibn Baaz, 14/177, Fataawa al-Shaykh Ibn ‘Uthaymeen, 18/208

Zakaah on Debt

The debt is the property of the lender (the creditor), but because it is not in its owner’s possession, the fuqaha’ differed concerning it. When a Muslim is owed a debt by someone else, one of two scenarios must apply:

  1. That it is owed by someone who admits it and knows the amount and is willing to pay it.  The creditor should pay zakaah on the debt in addition to the wealth he has with him, so he should pay zakaah on all his wealth, and do that every year, even if he has not received it from the debtor, because it is like trust. And it is permissible for him to delay paying zakaah on the debt until the time he receives it, and then pay zakaah for all the past years.
  2. It is owed by someone who admits it, but he is in difficulty or is delaying payment, or it is with someone who denies it. The creditor does not have to pay zakaah, but when he does receive it, in order to be on the safe side, he should pay zakaah on it. al-Mawsoo’ah al-Fiqhiyyah(23/238, 239), Fataawa al-Lajnah al-Daa’imah, 9/190.

Poverty has been socio-economic distress over the years and Allah has provided enough resources to satisfy human needs but as a result of poor income distribution and financial indiscipline, poverty is still a pervasive problem. Islam offers its own social, political and economic approaches that, if applied, will contribute positively to poverty reduction and income inequality, and thus results in improved economic growth. Islamically, there are effective antipoverty instruments available for the government to use in reducing poverty. By the payment of Zakaah among other antipoverty instruments, the rich share their wealth with the poor and thus the process of concentration of wealth is checked and fair distribution ensured. Zakaah is a significant source of financing to meet private and public expenditure and a significant tool to reduce poverty, unemployment and inflation. It is also one of the means of achieving “social security”, but in Islam social security is not limited solely to Zakaah, rather it is also achieved by other means, such as Sadaqah (charity), Waqfs, war booty and stipends from the bayt al-maal (Muslim treasury). (Ibraheem, IIIBF IRTI 2017)

O Allah, we hope for Your mercy, do not leave us for even the duration of an eye blink (duration) and correct our total condition and grant us understanding. Besides You there is none worthy of worship.

Subhaanakallahumma wabihamdik ash-hadu alailaaha illa anta astagfirka wa atuub ilayk