Month

May 2019
Question: What is the Zakat liability on a fixed-term annuity? In the Name of Allah, the Most Gracious, the Most Merciful. As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh.  The Answer:  Zakat is not due on the total amount in a fixed annuity yet to be received. The Fiqh (jurisprudence of the answer): An annuity is a contract between you and...
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Question: How are raw materials, inventory and finished goods valued for Zakat? In the Name of Allah, the Most Gracious, the Most Merciful. As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh.  The Answer: 1. Raw material – for Zakat purposes, will consider its current value (usually difficult to determine, so may use cost price alternatively)  2. Work in progress...
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Question: What is the Zakat treatment for prepaid expenses? In the Name of Allah, the Most Gracious, the Most Merciful. As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh.  The Answer: The prepaid sum is no longer in one’s ownership and as such, it is not Zakatable. Prepaid expenses are future expenses that have been paid in advance. In other words, prepaid expenses are costs that have...
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Question: Is Zakat due on Sukuk al-Ijarah investments? In the Name of Allah, the Most Gracious, the Most Merciful. As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh.  The Answer: Ijarah Sukuk is based on an underlying Ijarah structure. Certificates are issued by a special purpose vehicle that entitles the holders to an ownership interest and a right to a return in proportion to...
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