zakat-obligation

Imposing Zakat on Legal Entities and Its Applications to Islamic Financial Institutions

Zakat is imposed on particular assets own by Muslims. However as there has been
a tremendous development in trades locally and globally, and with the growth of Islamic banking and finance and the increase of demand for Shariah compliance services and supplies, there is a suggestion by some contemporary Muslim scholars to impose zakat on the legal entity. This implies that the calculation is based on the company’s net asset value. Based on this proposition, there is no need to look at who are the shareholders whether they are government link companies, foreign parent companies or individual
proprietors, Muslims or non Muslims. This paper aims at examining the validity of
imposing zakat on the legal entities from Shariah perspective.

for further reading:

Paper on Imposing Zakah on legal entities070711

slides

zakat-on-legal-entity-Jakarta-19-21July2011

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