Are pensions considered to be a “zakatable” asset?

Q: Are pensions considered to be a “zakātable” asset? الجواب حامدًا و مصليًا و منه الصدق و الصواب A: Final Salary pension schemes are not zakātable assets. Average Salary schemes also follow the same rule. Money Purchase schemes and Private Pension schemes wherein the pension fund is invested on behalf of and sometimes at the […]

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What is the ruling in relation to paying zakah on outstanding invoices owed to my business?

Q: What is the ruling in relation to paying zakāh on outstanding invoices owed to my business? For e.g. if a wholesaler sells his merchandise to retailers on credit; How should the wholesaler treat the outstanding amounts on the invoices for the purposes of zakāh? الجواب حامدًا و مصليًا و منه الصدق و الصواب A: […]

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Are Shari’ah compliant home purchase plans considered a debt for zakah purposes?

Q: Are Shari’ah compliant home purchase plans considered a debt for zakāh purposes?  الجواب حامدًا و مصليًا و منه الصدق و الصواب A: Under the Murabaha home purchase plan the client purchases the desired property on a deferred payment basis from the financier. Ownership of the property is vested in the client at the time […]

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What is the Shari’ah position with regards to zakah on Ijarah home purchase plans?

Q: What is the Shari’ah position with regards to zakāh on Ijarah home purchase plans? الجواب حامدًا و مصليًا و منه الصدق و الصواب A: Under the Ijarah home purchase plan the client incurs a debt only to the extent of the outstanding monthly rental payments subsequent to his use of the property. This debt […]

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