Page 12 - Obligatory Zakat Made Easy
P. 12
ZAKAT ON SHARES
Definition
Dr Yusoff Al-Qardhawi in his book Fiqh-Zakat defines
shares as valuable papers traded especially in the stock
exchange.
Share certificates in a company listed in the stock
exchange are easy to liquidate compared to shares in a
company that is not listed in the stock exchange such as a
private limited company or a co-operative.
Definition
The share owner can separate the calculation of zakat on
shares into two groups:
i. Shares Owned Over a Year
Shares held for annual returns or long-term ownership
should be imposed zakat at the current market value
plus the dividend earned at the rate of 2.5%.
Long Term
[Current Share Value + Trust account current balance
Note 5
+ Dividend - Related costs ] x 2.5%
= [RM134,000.00 + RM5,000.00 + RM1,000.00
- RM400.00] x 2.5%
= RM139,600.00* x 2.5%
= RM3,490.00
Note 5: Related costs are brokerage costs, GST, clearing fees,
stamp duty etc.
*Amount has reached nisab.
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