Page 13 - Obligatory Zakat Made Easy

Definition ii. Shares Sold in One-Year Period

Dr Yusoff AI-Qardhawi in his book Fiqh-Zakat defines
shares as valuable papers traded especially in the stock Shares bought for trading or that are short-term in
exchange. nature should be paid zakat at the rate of 2.5% of the
current market value in ownership.
Share certificates in a company listed in the stock
exchange are easy to liquidate compared to shares in a Short Term
company that is not listed in the stock exchange such as a
private limited company or a co-operative. [Current Share Value+ Trust account current balance
- Related costs Notee ] x 2.5%
= [RM84,000.00 + RMS,000.00 - RM350.00] x 2.5%
Definition = RM88,650 00* X 2.5%
= RM2,216.25
The share owner can separate the calculation of zakat on
shares into two groups: Note 6: Related costs are brokerage costs, GST, clearing fees,
stamp duty etc.
*Amount has reached nisab.
i. Shares Owned Over a Year
Shares held for annual returns or long-term ownership
should be imposed zakat at the current market value Companies Paying Business Zakat
plus the dividend earned at the rate of 2.5%.
Shares for companies paying business zakat are no longer
charged zakat.
Long Term

[Current Share Value+ Trust account current balance
+ Dividend - Related costs Notes ] x 2.5%
= [RM134,000 00 + RMS,000.00 + RMl,000.00 Shares Not Listed in Stock Exchange
- RM400.00] x 2.5%
= RM139,600 00* x 2.5% These shares are not easily liquidated. Practically, zakat
= RM3,490.00 should be paid on the dividend received if it reaches nisab.

Note 5: Related costs are brokerage costs, GST, clearing fees,
stamp duty etc.
*Amount has reached nisab.

10 11