Gold weight × current price × 2.5% = Zakat Amount
100 gram x RM144.38= RM14,438 x 2.5% = RM360.95
Currency is subject to zakat because it can be used for transactions just like gold and silver. Money, whether in the form of paper, coins, or anything else, is equivalent to gold and silver as a purchasing power.
The nisab for gold zakat is based on the current value of 20 mithqal (85 grams) of gold or silver (595 grams). The majority of scholars have based the nisab for money on the nisab of gold (85 grams).
Al-Quran Evidence:
وَٱلَّذِينَ يَكْنِزُونَ ٱلذَّهَبَ وَٱلْفِضَّةَ وَلَا يُنفِقُونَهَا فِى سَبِيلِ ٱللَّهِ فَبَشِّرْهُم بِعَذَابٍ أَلِيمٍۢ ٣٤
“And (remember) those who hoard gold and silver and do not spend them in the way of Allah — then give them tidings of a painful torment.
(Surah At-Taubah : Verse 34)
The saying of the Prophet Muhammad (peace be upon him):
Saidina Ali narrated that Prophet Muhammad (peace be upon him) said:
“When you have 200 dirhams and a full haul (one year) has passed, its zakat is 5 dirhams, and zakat is not obligatory (on gold) unless you have 20 dinars (one of the currencies used in ancient Arab lands). When you have 20 dinars and its haul is complete, its zakat is half a dinar. Likewise is the rate if its value increases, and zakat is not obligatory on any wealth unless a full year is completed.”
(Hadith narrated by Abu Daud)
The saying of Prophet Muhammad:
“Every owner of gold and silver who does not pay its due, on the Day of Judgment it will be made into plates and burned in the fire of Hell, then laid upon their sides and backs; each time the plates cool, they will be burned again on a day equivalent to fifty thousand (50,000) years, until they are judged among the servants of Allah, and their path to either Paradise or Hell will be seen.”
(Hadith narrated by Muslim)
This refers to gold used for women’s body adornments, accessories, or furniture, whether used occasionally or continuously. Women’s jewelry gold is subject to zakat when its total weight exceeds the ‘uruf (customary threshold). The ‘uruf rate for gold in the state of Selangor is 800 grams (current customary rate).
Example:
[(Gold weight – Uruf) × current gold price × 2.5%]
(900 gram – 800 gram) x RM144.38 = RM14,438 x 2.5% = RM360.95
This refers to gold that is owned not for decorative purposes, whether in the form of coins, bars, castings, jewelry, or similar items.
It is subject to zakat at 2.5% of the total amount if the amount owned meets or exceeds the nisab, which is 85 grams. This is different from women’s jewelry. The nisab for non-worn gold is 85 grams.
Example:
Gold weight × current price × 2.5% = Zakat Amount
100 gram x RM144.38= RM14,438 x 2.5% = RM360.95
Pledged gold is fully owned and wajib zakat is due after deducting the loan value and storage fees.
Example:
[(Current gold weight × current gold price) – Loan value – Storage fee] × 2.5% = Zakat Amount
[(200 gram x RM144.38= RM28,876) – RM10,000 – RM76] x 2.5% = RM470
The ruling on such investment is that it is invalid and prohibited (haram). It falls under the category of trading something that does not physically exist and selling something that the seller does not own. The contract is void because it does not meet the essential conditions for a valid transaction, both in terms of the contracting parties and the subject matter.
Any profit derived from this investment is considered haram and, therefore, not subject to zakat. However, the principal or capital of the investment is lawful. Thus, if it reaches the nisab, zakat of 2.5% on the total capital must be paid.
In cases where the contract is defective (akad fasid) due to failing to meet the conditions of a valid sale, but the transaction concludes with a transfer of ownership (qabd), zakat becomes obligatory on it because the ownership status is considered complete. That is, zakat is required on both the principal and the profit for transactions with a defective contract but accompanied by qabd.
| Type of Akad | Explanation | Ownership Status | Zakat Status |
|---|---|---|---|
|
Invalid Akad |
|
Invalid |
Not Mandatory |
|
Fasid contract without Qabd |
A contract that does not fulfill the conditions of a valid sale and purchase and is not completed with the transfer of ownership (qabd). |
Invalid |
Not Mandatory |
|
Fasid contract with Qabd |
A contract that does not fulfill the conditions of a valid sale and purchase, |
Valid |
Mandatory |
Zakat Selangor Hotline : 1-300-88-4343
Email : maklumbalasaduan@zakatselangor.com.my
