Mu' meneen Brothers and Sisters,

As Salaam Aleikum wa Rahmatullahi wa Barakatuh.  (May Allah's Peace, Mercy and Blessings be upon all of you)

One of our brothers/sisters has asked this question:

Dear Brother,

I`am 1 of 5 shareholders of a family company. The company is doing very well in it`s business and has large land holdings as assets. The company pays an annual zakat which is of significent value. Does eac sharholder have to pay an individual zakat seperate to that of the company? In my case, 20% of the zakat whicg the company pays is more than what I have to pay on my personal assets? So can I count this as zakat also? 

(There may be some grammatical and spelling errors in the above statement. The forum does not change anything from questions, comments and statements received from our readers for circulation in confidentiality.)

Answer:

Zakah on company assets

In the name of Allah, We praise Him, seek His help and ask for His forgiveness. Whoever Allah guides none can misguide, and whoever He allows to fall astray, none can guide them aright. We bear witness that there is no one (no idol, no person, no grave, no prophet, no imam, no dai, nobody!) worthy of worship but Allah Alone, and we bear witness that Muhammad (saws) is His slave-servant and the seal of His Messengers.

Your Question: Does eac sharholder have to pay an individual zakat seperate to that of the company?

If the zakat is paid by the company for its assets, then each individual shareholder need not again pay the zakat for his share that he owns in the company.

But if the shareholder has other personal assets other than his shares in the company, he would indeed be liable to pay ‘zakah’ on his additional assets and wealth.

Your Question: In my case, 20% of the zakat whicg the company pays is more than what I have to pay on my personal assets? So can I count this as zakat also? 

It would neither be accurate nor righteousness to substitute the extra zakah the company pays on its assets, as the zakah of one’s personal wealth which have nothing to do with the company.

It would be righteousness and closer to piety if one would accurately calculate one’s personal excess wealth separately, and pay its due zakah accordingly.

Whatever written of Truth and benefit is only due to Allah’s Assistance and Guidance, and whatever of error is of me alone. Allah Alone Knows Best and He is the Only Source of Strength.

Your brother and well wisher in Islam,

Burhan