What Zakât Rate Does the Second Opinion on Stocks and Shares Prescribe?
This opinion holds that shares and bonds are analogous to commodities purchased for resale like any other business good. Therefore, their Zakât is calculated at a standard personal wealth rate of 2.5 percent of total portfolio value at the Zakât due date because they are bought with expectation of profit, and readily traded for money. Here stocks and bonds are both treated as “trading assets,” regardless of the economic activity of the issuing corporation. This is the opinion of Shaykhs Abû Zahrâ and Khallâf. Shaykh Qardawi believes that both opinions are sound and suggests that either method can be selected by the Zakât administration or payer. Note: If the company pays zakât on all shares, the shareholder does not pay zakât because there is no double payment of zakât. This book endorses the opinion that stocks and shares are trading goods, zakatable at 2.5 percent. The form recommends individual shareholders as the Zakât payers. Confusion may arise in assessing Zakât on stocks for sh
