Page 14 - Obligatory Zakat Made Easy

ZAKAT ON GOLD

Definition

Gold is a type of metal for which the owner is obliged to
pay zakat. The obligation of zakat on gold is described by
Allah (SWT):

“And there are those who bury gold and silver and spend it
not in the way of Allah: announce unto them a most
grievous penalty. On the Day when heat will be produced
out of that (wealth) in the fire of Hell, and with it will be
branded their foreheads, their flanks and their backs "This
is the (treasure) which ye buried for yourselves: taste ye,
then the (treasures) ye buried!”
At Taubah: Verses 34-35

Calculation Method

i. Unused Jewellery Gold (Not Worn)
Jewellery gold that is not used or worn even once
during a year is considered unused gold. If the value of
the gold equals to or exceeds the nisab of 85 grams, it
is obligatory to pay zakat with a rate of 2.5% of the
total gold value.
Calculation Example

Weight of unused gold x Current price of 1 gram of
gold x 2.5%
= 100 grams x RM180.00 x 2.5%
= RM18,000.00 x 2.5%
= RM450.00

ii. Worn Jewellery Gold
Jewellery gold that is worn for the purpose of
self-adornment is not subject to zakat, but if it exceeds
the uruf, zakat will be imposed. Uruf is the local
practice of wearing jewellery gold. The uruf rate in the
Federal Territory is 800 grams. The zakat rate is 2.5%.
Calculation Example

Weight of worn jewellery gold x Current price of
1 gram of gold x 2.5%
= 900 grams x RM180.00 x 2.5%
= RM162,000.00 x 2.5%
= RM4,050.00

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