Zakat on stocks

💰 Everyday Islamic Finance Zakat
,
#1

السلام عليكم ورحمة الله وبركاته

I have seen various articles on how much zakat to pay on pensions that hold shariah funds. Some suggest 40% and others 25% (based on the assumes liquid assets within the stocks in these funds).

I wanted to do a quick check on some of the biggest holdings within my pension funds and wanted to run these past the community to see if my calculations are right.

Here are some examples. Can folks please do me a favour and check if I’ve got it right? جزاك الله خير

Apple (APPL)
Market Cap = 2600B
Current Assets = 140B
Zakatable assets as % = 140/2600 = 5.5%

I’ve assumes Non Current Assets are not liquid and therefore should not be in the zakatable calc.

Johnson and Johnson (JNJ)
Market Cap = 489B
Current Assets = 61B
Zakatable assets as % = 61/489 = 12.5%

Based on some of the top 10 holdings of my pension fund the zakatable assets within those individual stocks range from 3% to 13%. If I’ve done the working out correctly I could go with the 25% and that would be a safe assumption for me.

What does everyone think? I’d really appreciate everyones thoughts and advice on if I’ve done this correctly, or if you use a different method to work out zakatable assets within stocks.

#2

Alahmdulillah I’ve just recieved an email from Zoya saying they now offer a tool to work out zakatable assets on stocks (see below copy of email). These brothers are doing great work - may Allah accept it for them and bless them all.

Using their tool my two examples came up as below:

  • Apple zakatable asset as a % = 5.9%
  • JNJ zakatable asset as a % = 12.9%

Copy of email…

Salaam,

I’m dropping in your inbox today to let you know that we built a free mini-tool that helps you quickly and accurately calculate how much zakat you owe on your stock portfolio.

Traditional calculators either treat your stocks as cash or apply some arbitrary percentage to estimate the underlying asset value of your holdings. This can easily lead to overpaying, or worse, underpaying your zakat.

With our Zakat mini-tool, you can:

:white_check_mark: Add holdings manually or import a CSV

:white_check_mark: Separate short-term vs long-term holdings

:white_check_mark: Calculate true zakat based on the current assets of the company

It’s designed to be really quick and easy to use so you can go from feeling :exploding_head: to :relieved: about your zakat.

Check it out here :arrow_down:

https://zoya.finance/zakat

Love it? Hate it? Let us know :slight_smile: