Zakat on Joint Money

প্রশ্ন · Question

Assalamu Alaikum wa Rahmatullah wa Barakatuhu,
Topic: Is Zakat an individual ‘Ibadah?
Our honorable Ameer, noble sheikh...
May Allah help you, grant you success, and aid you with Ansar
(supporters) like the Aws and Khazraj...
With reference to the above topic I would like to ask:
Is Zakat an individual ‘Ibadah that is obliged upon individuals only or is
it obliged for companies as well?
To clarify my question, I will give an example:
Khalil and Zaid have a company at a rate of 50% each, and the
company’s capital was 3000 Jordanian dinars, Khalil did not have
anything else Zakat worthy, and he had a personal debt of 1000 dinars,
and Zaid had 4000 dinars in his house and a year had passed...
How do both Khalil and Zaid calculate their zakat? Does each person
calculate his percentage in the company separately from the other
person, or is zakat paid on the company's total capital as a company?

উত্তর · Answer

Wa Alaikum Assalam wa Rahmatullah wa Barakatuhu,
May Allah reward you for this kind Du’a, and I ask Allah ﷻ to answer
this Du’a and reward you...
Joint money zakat:
With regard to zakat on money in gold and silver, and the current cash
that takes place in their place, zakat on it is obligatory for the

individual on his money if he reaches the nisaab (amount) and one
year has passed...
As for the example that you mentioned in the question, its answer is as
follows:
1. As for Khalil, his share of the company’s capital is “1500 dinars”, and
he owes a debt of “1000 dinars,” meaning that what he has left to
calculate zakat is “500 dinars” because the debt he owes is reduced
from his money and zakat is on the money that remains after paying
the debt, and we have explained the evidence for that in the adopted
book – Al Amwal fee Dawlatil Khilafah – Funds in the Khilafah State
under the topic of Zakat on debt, page 165, in which it says:
(If someone has money that has reached the nisaab, and a year has
passed, and he owes a debt that reaches the nisaab, or the remaining
money after the debt is paid, is less than the nisaab, then he does not
pay zakat, and that is like he who owns a thousand dinars, and he owes
one thousand dinars in debt, or if he owns forty gold dinars, and he
owes thirty gold dinars, then in these two cases no zakat is due on him,
because he does not own the nisaab. It was narrated by Nafi’, by ibn
‘Umar who said: the Messenger of Allah ﷺ said:
«إذا كان لرجل ألف درهم، وعليه ألف درهم، فلا زكاة عليه »
“If a man owned one thousand dirhams, and he owed one thousand
dirhams, then zakat is not obliged for him” mentioned by ibn Qudamah
in Al-Mughni.
But if the money left over from the debt reaches the nisaab, then he
must pay zakat on it...) Ends.
The calculation that we have mentioned before the quotation are
based on the assumption that there are no capital profits for the
company, but if there are profits for the company, they are considered
capital growth and thus take its hukm, i.e. it is added to the capital of

each partner by the amount of his share in the profit and is taken into
account when calculating zakat...
Accordingly, if the amount remaining with Khalil according to the
accounts above is "500 dinars", if this amount exceeds the nisaab and
one year has passed, then zakat is calculated at the amount of 2.5%,
which Khalil shall pay from his money... and if the aforementioned
amount is not very high or a year has not yet passed, then he does not
have to pay zakat until it reaches the nisaab and the year has passed...
As mentioned above, if there are profits, then they are added to the
capital.
2. With regards to Zaid, his share of the company’s capital is “1500
dinars”, and he has “4000 dinars” in his house and there is no debt on
him, meaning he owns a total of “5500 dinars”, and this account is of
course at the assumption that the company has no capital profits, if
there are profits for the company, they are considered capital growth
and thus take its hukm, i.e. it is added to the capital of each partner by
the amount of his share in the profit and is taken into account when
calculating zakat...
And it is clear to Zaid that the money he has reached the nisaab
because it is a large amount of “5500 dinars.” If a year has passed,
then zakat is due on it at the amount of 2.5% on the whole amount,
that is, on “5500 dinars”, and the year begins as of reaching the nisaab.
I hope this answer is sufficient, and Allah Knows Best and is the Most
Wise.
Your brother,
Abu Yasin
19 Dhul Hijjah 1441 AH
Corresponding to 09/08/2020 CE