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Companies Zakat

In partnerships established on the basis of Islamic principles, each partner is liable with zakat which falls on his share. The partners are deemed to be the proxy of each other only in the transactions required by the trade. Zakat is a worship and its validity depends on intention. For this reason, partners need to give special authority to each other in order to give zakat on behalf of the company. We can explain the zakir of companies through capital partnership and profit partnership as follows:

1. Capital Partnership:

It is a type of partnership that two and more people create by merging their capital. Capitals can be equal or in different amounts. While the way of sharing the profit is determined by a free contract, the loss is a rule according to the capital ratios. Such partnerships can be either a trading company or a manufacturing industrial company.

Fixed capital such as offices, shops, warehouses, service vehicles to be excluded from zakat is less in the trade company.

For example, the calculation of the year-end zakat of a company trading foodstuffs would be: First, the debts are deducted according to the year-end accounting results. Suppose that,

400 thousand € cash,
20 tons of rice,
20 tons of powdered sugar and
20 tons of dry beans,

If there are four equal shareholders, each of them will have a zakat obligation over a quarter. If each partner does not have a special external debt or any other property subject to zakah, the zakah debt of each of these companies arises as follows:

400 000 €: 4 = 100 000 €: 40 = 2500 € (Zakat to be given)
20 tons of rice: 4 = 5 tons of rice: 40 = 125 kg. rice (zakat to be given)
20 tons of granulated sugar: 4 = 5 tons of granulated sugar: 40 = 125 kg. granulated sugar (zakat to be given)
20 tons beans: 4 = 5 tons beans: 40 = 125 kg. beans (zakat to be given)

In the industrial company, non-increasing fixed capital becomes larger. The building, machinery, warehouses, service vehicles, lodgings and other non-commercial properties of a factory are excluded from zakat. After the debts are deducted, all the economic values ​​that remain, cash, foreign currency, raw material, finished or semi-finished products are subject to an intelligence of forty at the end of the year. Each partner is obliged to calculate the part of the company that falls under the property of zakah and share it in forty. However, if this partner has external debts, he / she can hold this share against the debts mentioned. If there are other goods subject to zakah, these are added to the share of the company and zakah is calculated.

2. Zakat of Stocks:

The document that determines the partnership share in a company is called “stock”. While this bill initially reflects the real assets of the company, years later, the amount of shares remains constant even though the company’s assets grew hundreds of times. For example, while the total amount in stocks amounts to three hundred million, the company’s assets can increase to ten or fifteen billion liras. Finding buyers over a few times the nominal value according to the figures above the stock is not enough to close the big difference between these stocks and assets. On the other hand, it is misleading to give dividends according to the figures of fifteen or twenty years ago.

It is possible and permissible to add undistributed profits to the company’s assets and ensure continuous growth once the partners’ consent is found. However, since the purpose of the partnership is to make profit, if any of the partners needs it, it is necessary to give the profit distribution by calculating its profit. In this case, the shares of the non-profitable partners will be grown. The profits that are not distributed briefly or partially distributed, or the assets of the company, which are constantly changing due to inflation, should be valued through revaluation and reflected on the stocks. For example, if a person had a million lira share in a company of one hundred million liras fifteen years ago, if such a company had fifteen billion lira assets today, the share of this partner is up to 150 million liras. Here is the witness of such a company, If one third of non-zakat fixed assets are deducted, this partner will be liable for one-fifty of the fifty million liras. At the end of the year, every Muslim partner in an Islamic town has the right to know the percentage of the shares of the company in which he is a partner.

Profits obtained during the year from trade and non-commercial means such as offspring, inheritance and donation, born from animals, are added to the capital. At the end of the year, these are evaluated as a whole and zakat is calculated. However, additions that will occur after the year is not added to the original product.

3. Zakah of Bonds:

Profit-loss bonds are subject to zak over fixed income bonds, and profit and loss bonds at the end of the year.

4. Profit Partnership:

Labor-capital partnership can be established by revealing capital on one side and labor on the other. This is called “Mudarabe” in Islam. Sharing profit is according to the free agreement between the capital owner and the operator. Unless the operator has the intent, defect or negligence of the operator, only the owner of the capital will bear it. The operator’s share of the loss arises in the form of wasted labor. Mudarabe also constitutes the basis of Islamic banking.

In the labor-capital partnership, without the liquidation of the partnership, at the end of the year, the owner of the capital is liable for the share of capital and profit, while the operator is liable only for the share of profit. (Ibn Abidin, Redu’l Muhtar, C.3, Shf.364, Züheyli, al-Fıku’l İslami and Edilletuhu, C.2, Shf. 799)

5. Miscellaneous Articles for Determining the Zakat of Trade Goods

The value of each property in hand is determined based on the money in the circulation in that district and zakat is calculated in accordance with the above formula.

Goods (goods and commodities) other than gold, silver and intervention coins are not subject to intelligence unless they are commercial, agricultural or saime. Although the types of merchandise cannot reach the amount that will be subject to zakah on their own, one is added to another; If the amount obtained reaches the quorum, zakah is calculated in gold or silver in favor of the needy, and the zakat is paid. In order for a commodity to be subject to zakah, it is imperative that it is enhancer and breeder. This is not the case for gold, silver and money. These themselves are considered as nami (enhancer). (El-Ihtiyar, C.1, p. 112)

With an example, the subject is better explained: 10 sheep, 5 cattle, 2 horses, 1 silver crab, 1 gold mixed tray, several shirts, etc. to trade in the hands of a Muslim. the situation is checked. It is seen that none of the goods in this amount has a proportion by itself. Since these goods have a commercial identity, they are all brought together and valued in gold or silver, and their alms are given at the rate of 1:40.

If the animals purchased for trade are included in the group of animals within the year, zakat period is calculated from this date. It is obligatory to pay the zakat after a year after these goods. Since the assets and trade goods are miscellaneous, the towel that is required for one (a year has passed) does not apply to the other. If the status of trade goods and gold and silver change during the year, the towel is not interrupted. In other words, the beginning of a date is not determined for these goods to be subject to zakir. (Istılahat-ı Fıkhiyye Kamusu, C. 4, Shf. 94)

If the quorum remains at the end of the year, zakah must be paid. The shortcomings in the middle of the year do not harm the necessity of zakat.