FIQH of Zakaah: Understanding the Pillars of Third Pillar (7 of 9)

Zakaah on Land

Land that is acquired to be rented out, there is no zakaah on it. The fact that one took possession of the land with the intention of selling it means that zakaah is due on it every year, so one should calculate the value of the land at the end of the year and pay zakaah on this amount if the value reaches nisaab. The rate of zakaah that must be paid on it is one-quarter of one-tenth, i.e. 2.5%. al-Sharh al-Mumti’, 6/149, Fataawa al-Lajnah al-Daa’imah, 9/331. Q9:103, Fataawa al-Lajnah al-Daa’imah, 9/324, 325.

Zakaah on Savings and Fluctuating Savings

Zakaah is only due on saved wealth and that saving reaches the nisaab (threshold or minimum amount), and one year has passed. In a situation where a person has a monthly salary or wages and he spends all of it and has nothing left, so that at the end of the month he has spent all his money, then he does not have to pay zakaah, because for zakaah to be obligatory, one full year must have passed (i.e., one full year from the date of his taking possession of the nisaab, the minimum amount of wealth on which zakaah is due).

The employee with a salary will find himself in one of the following two situations:

  1. He spends all of it and does not save anything, in which case he is not obliged to pay zakaah;
  2. He saves some of it, sometimes more and sometimes less.

However, zakaah is only due when the salary or saving reaches the nisaab and one full year have passed without reduction. One can make a schedule of his earnings from the date it reaches nisaab and write down every amount and the date on which he took possession of it. Then he should pay zakaah for each amount separately when one year has passed from the date on which he took possession of it, this is somehow technical. But one wants an easier method and wants to be more generous and give precedence to the poor and others who are entitled to zakaah over himself, then he can pay zakaah on all the money he possesses when one year has passed from the date when his wealth first reached the nisaab. This will bring a greater reward and raise him higher in status; it is easier for him and is more generous towards the poor and needy and others who are entitled to zakaah. Whatever extra amount he may pay will be regarded as a “down payment” on the zakaah for any wealth for which one year has not yet passed. (From Fataawa al-Lajnah al-Daa’imah, 9/280-281).

Shaykh Ibn Baaz (may Allah have mercy on him) said: With regard to money that is being saved for marriage, or to build a home, and so on, it is subject to zakaah if it reaches the nisaab and one year has passed since it reached the nisaab, whether it is in the form of gold, silver, or paper currency, because of the general meaning of the evidence which indicates that zakaah is due on whatever reaches the nisaab, after one year has passed, without exception.  Majmoo‘ Fataawa Ibn Baaz (14/130), Fataawa al-Lajnah ad-Daa’imah (9/200)

Note: If the amount of money decreases and drops below the nisaab during the year, then no zakaah is due, and you start reckoning the year anew when the amount of money reaches the nisaab again.

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.

FIQH of Zakaah: Understanding the Pillars of Third Pillar (6 of 9)

Zakaah on Farm Produce

Zakaah must be paid on grains and fruits according to scholarly consensus. Ibn Qudaamah (may Allah have mercy on him) said in al-Mughni (2/294): The scholars are unanimously agreed that zakaah is obligatory on wheat, barley, dates, and grapes. This was stated by Ibn al-Mundhir and Ibn ‘Abd al-Barr. Allah, may He be exalted (interpretation of the meaning) says: “but pay the due thereof (its Zakaah, according to Allah’s Orders 1/10th or 1/20th) on the day of its harvest” Q 6:141. Al-Bahooti said in Kashshaaf al-Qinaa‘ (2/205): Zakaah must be paid on every kind of fruit that may be measured or stored, such as dates, raisins, almonds, pistachios and hazelnuts. In ash-Sharh al-Mumti‘ (6/70): Zakaah must be paid on grains and fruits, on condition that they can be measured and stored. If that is not the case, then no zakaah is due on them.

It is not obligatory to give zakaah on grains and fruits unless they reach the minimum threshold (nisaab), which is five wasqs. A wasq is sixty saa‘, and a saa‘ is four mudds, and the mudd is what may be held in the cupped hands of man of average build. Muslim (979) narrated from Abu Sa‘eed al-Khudri (may Allah be pleased with him) that the Messenger of Allah (blessings and peace of Allah be upon him) said: “There is no zakaah due on grains or dates unless they reach five wasqs.”

The rate of zakaah to be given on crops and fruit varies according to the method of irrigation. Ordinarily, the zakaah on grains or fruits is one tenth, and if it requires mechanical means of lifting up the water, then the rate is one half of one tenth. Narrated by al-Bukhaari (1483) from ‘Abdullah ibn ‘Umar (may Allah be pleased with him) from the Prophet (blessings and peace of Allah be upon him) who said: “With regard to that which is irrigated by rainfall and springs, or has a taproot, (the zakaah) is one tenth, and with regard to that which is irrigated by drawing water, (the zakaah) is half of one tenth.” ash-Sharh al-Mumti‘ (6/77)

Zakaah on Jewelry

Jewelry that has been prepared to be worn and used as an adornment is something concerning which the fuqaha’ differed as to whether it is obligatory to pay zakaah on it. The Hanafis are of the view that it is obligatory to pay zakaah on it, but the majority of Maalikis, Shaafa’is and Hanbalis are of the view that it is not obligatory to pay zakaah on it. The more correct view is that of the Hanafis, because of the great deal of evidence. Abu Dawood, 155; classed as saheeh by al-Albaani in Saheeh Abi Dawood, Abu Dawood, 1563; al-Nasaa’i, 2479; classed as hasan by al-Albaani in Saheeh Abi Dawood, Fataawa Islamiyyah, 2/84.

There is no zakaah on gems that you have bought, if they are not gold or silver. The majority of scholars are of the view that no zakaah is due on precious stones unless they are for trade. In their opinion, zakaah is only due on gold and silver.  Imam Maalik said in al-Mudawwanah (1/431): No zakaah is due on gems, pearls or amber. Al-Shaafa’i said in al-Umm: No zakaah is due on the things that women wear for adornment, or that are kept by men and women, such as pearls, chrysolite, sapphires, rubies, precious stones extracted from the sea, etc… UNLESS they are prepared for trade, in which case they come under the same ruling as all other trade goods. Fataawa al-Zakaah, p. 97.

The zakaah must be paid by the owner of the jewellery, not by the husband. If it is paid by her husband or someone else on her behalf and with her permission, there is nothing wrong with that. Fataawa Islamiyyah, 2/85

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.

FIQH of Zakaah: Understanding the Pillars of Third Pillar (5 of 9)

Zakaah on Trade Goods

One has to pay zakaah on all the wealth that you have in the form of cash or products offered for sale in the stationery store after one full (Hijri) year has passed, if their value meets the minimum threshold for zakaah (nisaab). Fataawa al-Lajnah al-Daa’imah, 9/313.

The way in which the zakaah on trade goods is worked out is based on their market value (which is usually the price for which they are sold in the store) after one full year has passed, whether this price is equal to the price paid for them or it is more or less. And if the businessman is one who sells wholesale, then he should base his zakaah on the wholesale price, and if he is one who sells retail, then he should base his zakaah on the retail price. Then zakaah should be paid at the rate of one-quarter of one-tenth (i.e., 2.5%). (Risaalah fi’l_Zakaah by Shaykh Ibn Baaz, p. 11; Risaalah fi’l-Zakaah al-‘Aqaar by Shaykh Bakr Abu Zayd, p. 8), Al-Sharh al-Mumti’, 6/146, al-Mughni (4/249) al-Mawsoo’ah al-Fiqhiyyah (13/171), Majmoo’ Fataawa Ibn Uthaymeen, 18/205; see also 18/240, Fataawa al-Lajnah al-Daa’imah, 9/324, Fataawa al-Lajnah al-Daa’imah (9/319), Majmoo’ Fataawa Ibn ‘Uthaymeen, 18/233.

Zakaah on Equipment or Company Fixed Assets

There is no zakaah on equipment, unless they are prepared or put for sale. There is no zakaah on items that are for use, whether they are tools or other things. The basic principle is that whatever is prepared for sale is that on which zakaah is due. Tools or equipment used in the store are not subject to zakaah. Fataawa Ibn Baaz, 14/184.

Company buildings, heavy and light machinery and vehicles that are used to transport goods or company workers are not subject to zakaah.  The early scholars stated that the tools of craftsmen such as carpenters, builders, blacksmiths and the like are not subject to zakaah. Al-Kasaani said in Badaa’i’ al-Sanaa’i’ (3/398): As for the tools of the craftsman and the buckets and containers, they are not trade goods, because they are not usually sold with the goods. Kashshaaf al-Qinaa’ (168/2) Majallat al-Majma’ al-Fiqhi, 4/1/722, Majmoo’ Fataawa Ibn Baaz, 14/184

Zakaah is due on the rental fees paid if they are rented out, after one year has passed, if that reaches the nisaab. If the owner of a company enters into contracts and uses these machines to fulfil the contracts, then the zakaah should be paid from the profits earned from these contracts, after one year has passed, but no zakaah is due on the machines themselves or on their value, because they have not been prepared for sale, rather they have been prepared for use. Fataawa al-Lajnah al-Daa’imah, 9/345

Also, no zakaah is required of a man for what he keeps of vessels, furniture, tools, cars, property etc, even if he has prepared them for renting out. If a person owns many properties that are worth millions, but he does not deal in them by buying or selling, rather he prepares them for using or renting, then no zakaah is due on these properties, even if they are many. Rather zakaah is due on what he earns from them in rental payments or income; zakaah must be paid on rental income when one year has passed since the beginning of the contract because the Prophet (peace and blessings of Allaah be upon him) said: “The Muslim does not have to pay zakaah on his slave or his horse.” Majmoo’ Fataawa Ibn ‘Uthaymeen, 18/254.

 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.