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
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?
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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