What is Zakat
Zakat is a form of obligatory charity that has the potential to ease the suffering of millions. With the literal meaning of the word being 'to cleanse'. Muslims believe that paying zakat purifies, increases and blesses the remainder of their wealth.
Do I have to pay Zakat
You must pay zakat if all the following apply to you
You are Muslim
You have money/assets (yours or on behalf of a minor or estate)
The money/assets has reached nisab (threshold of wealth = 85g of gold or 612g of silver)
You have the money/assets for a full lunar year
You have access and control of the money/assets
What money/assets are not subject to Zakat
Properties for personal and non-commercial use
Gold/silver jewelry for personal use (reasonable amount)
Jewelry other than gold or silver
Money/assets below nisab
Fixed business assets
Example of money/assets that are subject to Zakat
Personal or business cash at hand (2.5%)
Personal or business bank account (2.5%)
Business assets for sale (2.5%)
Gold/silver for saving or trade (2.5%)
Loans: borrower or lender based on school of fiqh (2.5%)
Investment and retirement account (2.5% after adjusting for fixed assets, taxes and penalties)
Business that has assets for trade or inventory (2.5% of assets or inventory)
Rental or service business (2.5% of net income)
farming (5% or 10% depends on type of irrigation)
Mining (20%)
Livestock (varies)
Opmerkingen