Zakaat on fresh fish

He goes fishing every three days and sells it straight away. Does he have to pay zakaah on that?

Praise be to Allaah. 

I asked my shaykh, Shaykh ‘Abd al-‘Azeez ibn Baaz (may Allaah have mercy on him) about this, and he answered:

  No, this (i.e., fish) is not merchandise. It is like the case if he were to go fishing every day and eat what he caught. But if he puts it in the freezer and then sells it, in this case, if a whole year passes, then he has to pay zakaah. And Allaah knows best.

Co-operative organizations

A co-operative business organization is set up in such a way that it is obliged according to its constitution to give ten percent of its net profits to charitable causes. Does it have to pay zakaat on its profits?

Praise be to Allaah.

This co-operative business organization is governed by the same rules as other business organizations: it must pay zakaat on its wealth. What you have mentioned about it being set up in such a way that it has to give ten percent of its net profits to charitable causes does not mean that it is exempt from having to pay zakaat. The ten percent referred to in the question is like voluntary charity (sadaqah), and sadaqah does not replace zakaat, because zakaat is an obligatory act of worship which must be carried out with the appropriate intention (niyyah). This amount of ten percent is not being paid as zakaat; it is being given as a voluntary act of charity. So this co-operative organization has to pay zakaat. And Allaah knows best.

Zakaah on dairy business and agricultural companies

I am investing in a dairy business. Do I have to pay zakaah on the cows owned by this business, or on the net profits that result from it, as is the case with investments in real estate or cars? How can we pay the zakaah for agricultural corporations which produce agricultural and dairy products – knowing that their shares are traded on the market. May Allaah reward you and guide you.

Praise be to Allaah.

Zakaah is obligatory on the money that is made from the profits of the business, if it reaches the nisaab (minimum amount) and one full (hijri) year passes from the time when the money was obtained. The rate of zakaah is one-quarter of one-tenth, i.e. 2.5%. Zakaah is also due on the profits of the shares in agricultural and dairy businesses and the like, if they reach the nisaab and one full (hijri) year has passed, if they are purely for investment. However, if they are shares which are for sale, the zakaah is payable on them and on their profits. And Allaah is the Source of strength. May Allaah bless our Prophet Muhammad and his family and companions, and grant them peace. 

He paid a sum of money in advance to buy a car and the delivery was delayed – should he pay zakaah on it?

I have two bank accounts. In one of them I put my monthly salary, and in the other I put some other money. My question is: if I add up the money in the two accounts, how should I pay zakaah on that when the money in the monthly account changes each month?
My second question is: I paid a sum of money as the down payment on a new car, but the agent delayed importing it and this delay has lasted more than a year; I had not choice but to buy another car on the basis that I will sell one of them and keep the other.
So my question is:
1 – Do I have to pay zakaah on the money I paid in the down payment more than a year ago?
2 – When I sell one of the cars – which will be new – will there be any zakaah due on the price of the car?

Praise be to Allaah.

Zakaah should be paid on the money which a person has had for one full (hijri) year, whether it is from his salary or not, whether it is money that he earned or that was given as a gift or he inherited it; profit comes under the same ruling as capital and should be added to it.

 There is no zakaah on the money that you have paid towards the value of the car even if delivery of the car is delayed.                              

If you bought a second car with the intention of using it, then you sell it because you no longer have any need for it, then no zakaah is due on the money you receive for it until one year has passed.

Should zakaah on commercial goods be based on the price for which they are bought or the price for which they are to be sold?

How should zakaah be paid on commercial goods? Should it be based on the price for which they are bought or the price for which they are to be sold?

Praise be to Allaah.

The way in which the zakaah on trade goods is worked out is based on their market value (which is usually the price for which they are sold in the store) after one full year has passed, whether this price is equal to the price paid for them or it is more or less. Then zakaah should be paid at the rate of one-quarter of one-tenth (i.e., 2.5%). (Risaalah fi’l_Zakaah by Shaykh Ibn Baaz, p. 11; Risaalah fi’l-Zakaah al-‘Aqaar by Shaykh Bakr Abu Zayd, p. 8). 

This is perfectly just, because its value after one year has passed may differ from the price for which it was bought; it may be more or less. 

If the businessman is one who sells wholesale, then he should base his zakaah on the wholesale price, and if he is one who sells retail, then he should base his zakaah on the retail price. Al-Sharh al-Mumti’, 6/146. 

If he sells both wholesale and retail, then he should strive to work out the amount of goods he sells wholesale and the amount he sells retail, and pay his zakaah accordingly. If he errs on the side of caution and pays more than he owes, that is preferable, because he may think that he will sell these items wholesale and then sell them retail. 

And Allaah knows best. May Allaah bless our Prophet Muhammad and grant him peace.

Zakaat on money due whose payment is delayed

In the case of money due from the government which is finally paid after many years, is zakaat due on this money when it is received? And if so, is it to be paid for only one year? Or how is it to be calculated?

Praise be to Allaah.

If the case is as you describe, you should wait until a whole year has passed, beginning from the date the money was received, then you should pay zakaat. There is no zakaat due for the time that has passed because you did not possess the money in any definite fashion. And Allaah knows best.

When should a person make the intention to fast, and what if he finds out during the day that Ramadan has begun? When should a person make the intention to fast, and what if he finds out during the day that Ramadan has begun?

Should the intention to fast Ramadan be made at night or during the day? And if someone tells you at the time of duha (forenoon) that today it is Ramadan, should you make it up or not?.

Praise be to Allaah.

It is essential to make the intention to fast the month of Ramadan at night, before Fajr. It is not sufficient to start fasting it that day without the intention. Whoever finds out at the time of Duha that today it is Ramadan and makes the intention of fasting has to refrain from eating until sunset, and he also has to make up that day, because it was narrated by Ibn ‘Umar from Hafsah (may Allaah be pleased with her) that the Prophet (peace and blessings of Allaah be upon him) said: “Whoever does not have the intention of fasting before Fajr, there is no fast for him.” Narrated by Imam Ahmad, the authors of al-Sunan, Ibn Khuzaymah and Ibn Hibbaan; they classed it as saheeh and marfoo’. 

This is with regard to obligatory fasts. With regard to naafil fasts it is permissible to make the intention to fast on the day, if you have not eaten or drunk or had intercourse after Fajr, because it was proven in the hadeeth of ‘Aa’ishah (may Allaah be pleased with her) that the Prophet (peace and blessings of Allaah be upon him) entered upon her one day at duha time and said, “Do you have anything (any food)?” She said, “No.” He said, “Then I am fasting.” Narrated by Muslim in his Saheeh. 

And Allaah is the Source of strength. May Allaah send blessings and peace upon our Prophet Muhammad and his family and companions.