What Zakât Rate Does the First Opinion on Stocks and Shares Prescribe?
This opinion holds that such wealth is analogous to “produce of plowed land,” and therefore its zakatable portion accrues at a rate of 10 percent of the return. If the owner purchased these instruments with the intention of long-term investment, it is the actual gain—and not the productive capital itself—that is zakatable. So shares of corporations are zakatable at 10 percent on the dividends of these shares. This view also distinguishes between shares and bonds. Bonds are analogous to debts that one can expect to be paid. Zakât, therefore, is payable on them every year at a rate of 2.5 percent. Modern Muslim scholars concur upon this ruling. Most Islamic jurists have also agreed that consideration of the market value of your portfolio is allowable from the beginning to the end of the solar Gregorian calendar year for ease of calculation purposes, but 10.3 percent of the gain should be paid to offset the difference between the lunar Hijrî and solar Gregorian calendars.
