Zakat perniagaan refers to the zakat that is obligatory on wealth derived from business activities, whether based on manufacturing, mining, fisheries, shipping, supply, agriculture, services, or other sectors intended for trade.
This applies to all forms of business, including sole proprietorships, partnerships among Muslims or with non-Muslims, all types of companies, cooperatives, and share-based businesses.
Allah’s Command (Al-Quran):
يَٰٓأَيُّهَا ٱلَّذِينَ ءَامَنُوٓا۟ أَنفِقُوا۟ مِن طَيِّبَٰتِ مَا كَسَبْتُمْ وَمِمَّآ أَخْرَجْنَا لَكُم مِّنَ ٱلْأَرْضِ ۖ وَلَا تَيَمَّمُوا۟ ٱلْخَبِيثَ مِنْهُ تُنفِقُونَ وَلَسْتُم بِـَٔاخِذِيهِ إِلَّآ أَن تُغْمِضُوا۟ فِيهِ ۚ وَٱعْلَمُوٓا۟ أَنَّ ٱللَّهَ غَنِىٌّ حَمِيدٌ ٢٦٧
“O you who believe! Spend (in charity) from the good things you earn, and from what We have produced for you from the earth.”
(Surah Al-Baqarah: Verse 267)
Allah explains that all “good earnings” are subject to zakat. Therefore, anyone whose salary is their profession is also included under “earnings” that must be zakat-compliant.
Prophet Muhammad’s (s.a.w) Saying:
“It is obligatory upon every Muslim to give in charity (zakat).” They asked, “O Messenger of Allah, what about those who have no wealth?” He replied, “Work to earn something for yourself and then give in charity.” They asked, “What if one has no job?” He said, “Help those who seek help.” They asked again, “What if one is powerless?” He replied, “Act in ways of goodness and avoid evil; that itself is charity.”
(Hadith narrated by Muslim)
It takes into account the owner’s equity in the business entity, sources of financial funding, and adjustments made either by including or excluding certain items. In simpler terms, it is Capital plus Profit.
Owner’s Equity + Long-Term Liabilities – Fixed Assets – Non-Current Assets ± Adjustments = Business Assets Subject to Zakat Calculation
It also considers the business’s current assets minus current liabilities, with adjustments made for items relevant to zakat that need to be included or excluded.
Current Assets – Current Liabilities ± Adjustments = Business Assets Subject to Zakat Calculation
The adjustments involved in the above calculation are based on the following principles and rationale:
These should be excluded, such as items and proceeds that are prohibited, for example: usury (riba), gambling, and alcohol.
Payments such as water deposits, telephone deposits, electricity deposits, and similar items should be deducted because they do not meet the conditions of full ownership. (Zakat is only applicable to the actual recipient of the deposit, such as Telekom or TNB).
Money that is lent will be subject to zakat on the borrower, based on the fact that the characteristics of full ownership of the asset are transferred to the borrower. The borrower has the authority and freedom to manage the money for any purpose and to benefit from the loan.
The value of dividends on which the company has already paid zakat will be deducted.
Bad debts, obsolete stock, and significant & permanent impairments should be deducted.
Funds intended for charitable purposes, such as khairat or educational funds included in current assets, are exempt from zakat. However, for revolving charitable funds like Qardhul Hassan loans, only the principal amount utilized is exempt. For non-revolving charitable funds given as donations or khairat, only the remaining balance of the fund is exempt.
Only finished goods are considered; raw materials and work-in-progress stocks are not taken into account.
** Current Assets (Adjustment Cases to be Added Back)
All contributions, donations, and sadaqah made by the business entity at the end of the haul (final quarter) should be added back into current assets (assuming these donations do not compromise the company’s liquidity) because current assets allocated for charitable purposes are still subject to zakat, except when the source comes from a dedicated charitable fund.
According to Imam Shafi‘i’s view – there is no condition regarding debts in determining whether assets reach the nisab. According to Shafi‘i, financial debts (non-trade liabilities) do not prevent the obligation of zakat.
To meet the nisab, current liabilities that can be deducted are only operational in nature, including:
Accordingly, adjustments involve items that are not allowed for deduction, as follows:
Zakat Selangor Hotline : 1-300-88-4343
Email : maklumbalasaduan@zakatselangor.com.my
