ZAKAT of TRADES

Legal Basis

According to Ibn Arabi in Sharh at-Turmizi Volume 2 of paragraph 104 that “gather (akad) of their wealth” (Qur’an, 9: 103) is applicable to all riches comprehensively, however the type, name and the purpose. People who want to exclude one of the types should be able to submit an exucse. (Zakat Law p. 301)

Abu Dhar, “I heard the Messenger of Allah said, Camel has to be charited, so does the goats, and the clothing too.” (Ibn Hazm, Al-muhalla, Volume 5: 234-235).

Clothing (al-Baz) according to al-Qomus, means clothes, household appliances, and so on, which includes shirts, furniture, kitchenware. And compulsory zakat on the price when invested and traded (Zakat Law p. 303)

Ibn al-Mundhir said, “The jurists have come to a conclusion that the property is to be traded shall be obligatory when it was time for a year”. It is narrated from Umar, his son, and Ibn Abbas. Hasan Jabir bin Zaid, Maimun bin Mahran, Thawus, Nakha’I, Thaury, Auzai, Shafi’i, Abu Ubaid, Ishaq, and Abu Hanifah and his friends (Al-Mughni, Volume 3: 30)

In the Islamic Fiqh, the company is known as syirkah. As today, the company is a symbol of economic strength. Therefore, it is inappropriate to let the company apart from the obligation of zakat.

The Terms

  • It has passed a year
  • It has reached the nishab, 85 grams of gold
  • Free of debt
  • The zakat rate which must be paid is 2,5%
  • Can be paid by money or stuffs

How to Calculate

(Capital + Advantages + Receivables) – (Debt + Losses) x 2.5%

Example:

Fulan is a trader and his asset (capital) is Rp 10.000.000,-. His net profit  is Rp 3.000.000,- /month.  He  has started his business since January 2010, after one year he has Rp. 5.000.000,- for receivables which could be disbursed and Rp 3.000.000,-. for a debt that must be paid at this month.

The answer:

  • Zakat of trade is analogized to gold, the nishab is 85 grams of gold, reached haul with 2,5% for its rate
  • The assets or capital owned is Rp. 10.000.000,-
  • The profit every month is Rp 5.000.000,- x 12 = 60.000.000,-
  • The receivables is Rp. 5.000.000,-
  • The debt is Rp. 3.000.000,-
  • The calculation of zakat are:

(capital + profit + receivables) – (debt) x 2.5% =zakat

(10,000,000 + 60,000,000 + 3,000,000) – (3,000,000, -) x 2.5% = 1.750.000, –

  • So the zakat is Rp 1,750,000