Zakat on shares and investments: pointers by use
AmanaFi team · Updated · 1 min read
Zakat on an investment depends on what you do with it. Shares bought to be resold are treated like trade goods; those kept for income are the subject of more nuanced views.
Shares held for resale
These are trade goods: on the due date, take their market value and apply 2.5%, as for stock, together with the rest of your zakatable wealth.
Shares kept long term
Views vary and several approaches exist.
- Zakat on market value, as for resale.
- Zakat on the zakatable share of the company's assets, when known.
- Zakat on dividends received, depending on use.
Funds and company stakes
For a fund or company in which you hold stakes, find out the composition of assets. If much of it is operating assets, treatment may differ. Keep the statements of the due date and consult a qualified person for your case.
Frequently asked
Do I owe zakat on shares that lost value?
You calculate on the value on the due date, so on the current value after the fall. If your total wealth falls below the nisab, no zakat is due.
Put it into practice with AmanaFi
Period budget, projects, debts and loans, zakat: free, on mobile.
Open the app