zakat-obligation

Zakat Obligation on Shares from Shariah Perspective

This paper discusses the contemporary discourse of Zakat obligation on shares owned by shareholders in a company, concurrently with concise deliberation on multiple views of Shariah scholars regarding the treatment of shares mainly according to the intention of owning the shares and the nature of the company’s activities, as well as how shares are categorized and analogized in the light of Shariah perspective, which will affect the Zakat imposition drawn from it. Providing analysis of those views, it aims to dispel the confusion pertaining to the Zakat imposition liable on Zakatable assets held by the company, with clear focus on the shares owned by the company. Bringing along the suggestion of shares being treated as commercial goods (urud tijarah) and hence the zakat imposition on it regardless the primary intention of owning the shares in the first place, the arguments given are referral to the views of International Fiqh Academy in concordance to the modern practice of shares trading and ownership as been exercised in Bursa Malaysia, apart from proposing a distinguish between the ruling of zakat on shares owned by Public Listed Companies (PLC) and private limited companies that are elucidated in the paper. for details: Zakat Obligation on Shares from Shariah Perspective 0112016

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