Ramadan: More Worshippers… Don’t Discourage Them!

Alhamdulillaah wasalaatu wasalaam
Among the distinct features of the month of Ramadan is that our souls will be easily inclined to worship, hence, more believers attend congregational prayers compared to the number before Ramadan – Alhamdulillah! This is an opportunity to encourage people to continue such practices after Ramadan especially those that don’t observe Salat before. The saying “We see you today, waiting happen?” or such a statement is not the Sunnah of my Prophet sallallahu ‘alayhi wasalam.
‘Abdullah ibn Mas’ud radiyallahu ‘anih narrated that the Messenger of Allah salallahu ‘alayhi wasalam said: “Those who go to extremes are doomed.” He said it three times. Muslim 2670. The meaning of this hadith include exaggerated and affected speech trying to attract people’s attention, with no meaning or benefit. Hence, overburdening and being too strict in matters where strictness is inappropriate is not Islamic. And those who go to extremes in speech are those who speak in an affected manner – An Nihaayah 5/164. Don’t affect worshipers or repentant with your manner.
May Allah grant us understanding.

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

 

FIQH of Zakaah: Understanding the Pillars of Third Pillar (8 of 9)

Zakaah on Shares, Bonds or certificates

Sihaam (Share) refers to a partner’s right or portion of the capital of a joint-stock company. share has a number of values, such as Nominal value, Book value, True value, Market value. al-As-ham wa’l-Sanadaat (p. 47); Mawsoo’ah al-Mustalahaat al-Iqtisaadiyyah wa’l-Ihsaa’iyyah, p. 775. The zakaah must be paid according to their market value at the end of the year, because these shares are trade goods, and the value of trade goods should be worked out at the end of the year and the zakaah paid on the basis of this value, regardless of the nominal value of the shares. Majmoo’ Fataawa Ibn ‘Uthaymeen, 18/197. Al-Mughni, 4/75

The contemporary scholars and researchers differed concerning zakaah on shares based on company’s activities, but there are two main points of view: 

  1. Shares should be regarded as trade goods, regardless of the company’s activities.
  2. The ruling on shares differs according to the type of company that has issued the shares. This is the view of the majority of contemporary scholars, although they may differ amongst themselves concerning some details.

The share-issuing companies may be divided into four kinds: 

  1. Manufacturing and service companies that do not engage in any kind of trade, such as dye companies, hotel companies and transportation companies. No zakaah is due on shares in these companies, because the value of these shares is based on equipment, tools, buildings, furnishings and so on, which are needed in order to do the work, and there is no zakaah on these things. Rather zakaah is due on the profits of these shares if it reaches the nisaab and one year has passed.
  2. Companies which engage only in trade (commercial companies). Zakaah must be paid on shares in this type of company, after deducting the value of the buildings, tools, and equipment owned by these companies.
  3. Companies which engage both in manufacturing and trade. Zakaah must be paid on shares in this type of company, after deducting the value of the buildings, tools, and equipment owned by these companies. The net value of the buildings and equipment may be worked out by referring to the company’s annual budget.
  4. Agricultural companies. In this case, zakaah is due on the crops and produce – if the produce is of the type on which zakaah is due. So, it should be worked out what each share is worth in terms of crops and produce, then the share-owner must pay zakaah on it. He should pay one-tenth if the crops are irrigated naturally and half of one-tenth if they are irrigated artificially, subject to the condition that the shares reach the nisaab, which is 300 saa’s. al-Mu’aamalaat al-Hadeethah wa Ahkaamuha; and Shaykh ‘Abd-Allaah al-Bassaam and Dr. Wahbah al-Zuhayri, as stated in Majallat al-Majma’ al-Fiqhi, 4/742. Al-Bassaam stated that differentiating between commercial and manufacturing companies is the view of the majority. Majallat al-Majma’ al-Fiqhi, 4/1/725, Majallat al-Majma’ al-Fiqhi, 4/1/849, Majmoo’ Fataawa Ibn ‘Uthaymeen, 18/199, Fataawa al-Lajnah al-Daa’imah, 9/341, Majmoo’ Fataawa Ibn ‘Uthaymeen, 18/217

Generally, regarding shares, bonds …one of two scenarios must apply: 

  1. Some buy shares, bonds to trade them with the aim of making a profit. So, they come under the same ruling as trade goods, and zakaah must be paid on them according to their value at the end of every year.
  2. Some of them buy them and kept them so that they may have income from their profits, without trading in them. So long as they are keeping them for the purpose of benefiting from their profits and not for the purpose of trading in them, there is no zakaah on the capital or principles; rather zakaah is due on the profits or returns, if any of that is saved has reached nisaab and one-year passes.

The basic principle is that the one who should pay zakaah on shares is the owner of the shares himself, because the owner is the one who is obliged to pay his zakaah. But there is nothing wrong with the company paying zakaah on behalf of shareholders. The Fiqh Council has stated that there is no reason why a company cannot pay zakaah on behalf of shareholders in four cases:   If that is stated in the basic regulations, or if a decision to that effect is issued by the general membership, or if the law of the state obliges companies to pay zakaah, or if the shareholder delegates the company to pay zakaah on his shares.  Majallat al-Majma’ al-Fiqhi, 4/1/881

It must be noted that in the case of shares in agricultural companies and produce and crops on which zakaah is due, it is not stipulated that one year should pass before zakaah becomes due, according to scholarly consensus, because Allaah says (interpretation of the meaning): “but pay the due thereof (their Zakaah) on the day of their harvest” Q6:141 al-Mawsoo’ah al-Fiqhiyyah, 23/281

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.