Islamic Finance Fatawa

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A Detailed Analysis of Zakat on Inventory and Investments

To download the research in PDF format Click Here Researched and written by Mufti Faraz Adam, Amanah Advisors Reviewed by Khondamir Nusratkhujaev, AAOIFI, Board member Checked and Approved by Mufti Mohammed Zubair Butt Summary:  Zakat is payable on Amwal al-Tijara. Amwal al-Tijara are inventories purchased for resale in the ordinary course of business. Any asset purchased for resale as […]
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What is the Zakat treatment of crypto-assets?

QUESTION What is the Zakat treatment of Crypto-assets?  ANSWER In the Name of Allah, the Most Gracious, the Most Merciful As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh Answer: The Zakat treatment of crypto-assets depends on two things: The type of crypto-asset The investment and trading strategy in crypto-asset To read more on our explanation of crypto-assets, you can […]
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Treatment of Surplus from Sale of a Collateralised Asset

QUESTION How should surplus from the sale of collateral? ANSWER In the Name of Allah, the Most Gracious, the Most Merciful. As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh. The Answer: Any surplus proceeds in excess of an outstanding debt realised from the sale of a collaterised asset must be returned to the debtor. The Fiqh (jurisprudence of the […]
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Is lending and pegging repayment to the rate of inflation permitted?

  وَالْمُمَاثَلَةُ صُورَةٌ بِاعْتِبَارِ الْقَدْرِ؛ لِأَنَّ الْمِعْيَارَ فِي هَذَا الْمِقْدَارِ كَالطُّولِ وَالْعَرْضِ وَالْمُمَاثَلَةِ مَعْنِيٌّ بِاعْتِبَارِ الْجِنْسِيَّةِ وَلَكِنَّ هَذِهِ الْمُمَاثَلَةَ لَا تَكُونُ قَطْعًا إلَّا بِشَرْطٍ وَهُوَ سُقُوطُ قِيمَةِ الْجَوْدَةِ مِنْهَا لِجَوَازِ أَنْ يَكُونَ أَحَدُهُمَا أَجْوَدُ مِنْ الْآخَرِ وَإِذَا سَقَطَتْ قِيمَةُ الْجَوْدَةِ مِنْهَا صَارَتْ أَمْثَالًا مُتَسَاوِيَةً قَطْعًا فَإِنَّمَا يُقَابَلُ الْبَعْضُ بِالْبَعْضِ فِي الْبَيْعِ مِنْ حَيْثُ الذَّاتُ فَإِذَا […]
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Is there Zakat on an investment in a start-up company?

Question: Is there Zakat on an investment in a start-up company? In the Name of Allah, the Most Gracious, the Most Merciful. As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh. The Answer: Zakat on a start-up depends on the underlying net Zakatable assets of the company. An investor will pay Zakat (2.5%) on the percentage of shareholding in net […]
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What is the Zakat liability on a fixed-term annuity?

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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