Q: How would I calculate my zakāh as I am self-employed?
I am a locum Pharmacist and work as a limited company. My wages gets paid into my company account and not directly into my current account and as a self-employed person the fees I get paid are a gross amount which are liable to tax and statutory deductions. I am unsure as to how I should calculate my zakāh because my zakāh anniversary will invariably occur when I’ll have money in my accounts (current and company account) which hasn’t yet been subjected to tax or state deductions.
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A: Zakāh is payable on all assets owned by you on your zakāh anniversary minus all liabilities payable that have already been incurred. Anything that has been spent before your zakāh anniversary is not liable to zakāh even if was earned within the current zakāh year.
Thus zakāh is payable on the funds in both the company and current accounts less any tax liability already incurred.