Fatwa Q&As: How much zakat should I pay?



Q: Should I keep ties of kinship with my brother, even though he is defiant to our mother?

A: You should not sever the relationship with your brother. Aside from the command of Allah in this regard, it is always mutually beneficial to keep contact with him because it would allow you to advise him and potentially change his behaviour. Muslims have a duty to communicate with their blood relatives even if they have been treated badly by them.

Abu Hurayra (may Allah be pleased with him) reported that a person said to the Prophet Mohammed: “O Messenger of Allah, I have relatives with whom I try to have a relationship, but they sever (this relation). I treat them well, but they treat me badly. I am kind to them but they are harsh towards me.”

The Prophet replied: “If the matter is as you have said, then it is as if hot ashes are being thrown in their faces and there will always remain with you on behalf of Allah support with regards to them as long as you adhere to this (path of patience).”

Q: I am confused as to what amount I need to pay as zakat. I recently earned Dh180,000 and invested it in the stock market. I also have about Dh2,500 in a current account and am paying off an interest-free loan of about Dh18,000. I know that zakat is usually 2.5 per cent of a Muslim’s total wealth. So to which amount would this be applied?

A: Zakat is of paramount importance in our religion for, as the name implies, it is a purification of one’s wealth that has many spiritual benefits for giver and recipient.

To ascertain the amount of zakat you pay, calculate the remaining assets after deducting any debts you owe and then determine whether they exceed the nisab threshold of 85 grams of gold, as per its value on that same day. Provided your net worth is more than the nisab threshold, you would then need to pay zakat at a rate of 2.5 per cent on all assets.

To answer your question specifically, on the relevant zakat payment date you would need to add the financial value of your shares and any free cash. Provided you do not own other fixed assets such as property, you may deduct the amount of interest-free debt that you owe from this amount. If the resultant amount is above the financial value of 85 grams of gold then you would need to pay zakat at a rate of 2.5 per cent on all assets.

If the shares were purchased with the intention for resale then the entire holding, as per their market value on the nisab date, would be subject to zakat.

If you have a question for Awqaf, email newsdesk@thenational.ae with the subject line ‘Fatwa Q& A’.

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Iraq negotiating over Iran sanctions impact
  • US sanctions on Iran’s energy industry and exports took effect on Monday, November 5.
  • Washington issued formal waivers to eight buyers of Iranian oil, allowing them to continue limited imports. Iraq did not receive a waiver.
  • Iraq’s government is cooperating with the US to contain Iranian influence in the country, and increased Iraqi oil production is helping to make up for Iranian crude that sanctions are blocking from markets, US officials say.
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  • Iraq has been working to restore production at its northern Kirkuk oil field. Kirkuk could add 200,000 barrels a day of oil to Iraq’s total output, Hook said.
  • The country stopped trucking Kirkuk oil to Iran about three weeks ago, in line with U.S. sanctions, according to four people with knowledge of the matter who asked not to be identified because they aren’t allowed to speak to media.
  • Oil exports from Iran, OPEC’s third-largest supplier, have slumped since President Donald Trump announced in May that he’d reimpose sanctions. Iran shipped about 1.76 million barrels a day in October out of 3.42 million in total production, data compiled by Bloomberg show.
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